SM Tanveer calls on SBP to slash interest rates to single digits

As the State Bank of Pakistan prepares to announce its monetary policy decision, United Business Group (UBG) Patron-in-Chief SM Tanveer called for significant reduction in interest rates to single digits. 

He said this move would be a game-changer for the economy, stimulating growth and providing relief to borrowers.

In a statement, Tanveer emphasised the need for aggressive policies to support economic recovery. "Single-digit interest rates are essential for economic growth and development," he said. "It's time for the State Bank of Pakistan to take bold action and reduce interest rates to single digits."

He said there is an urgent need to reduction in the interest rate to 6% to stimulate economic growth. 

Inflation has already dropped to 4% and CPI at 0.3%, which means the current 11% rate is too high. A reduction would boost industries, make exports more competitive, and save the government Rs3.5 trillion.

Patron-in-Chief, United Business Group (UBG) Tanveer's demand comes ahead of the Monetary Policy Committee meeting scheduled for Wednesday, July 30. While analysts expect a cut of 1-1.5% in the policy rate, Tanveer is urging the central bank to go further and bring interest rates down to single digits.

The business community is eagerly awaiting the SBP's decision, hoping it will provide a much-needed boost to the economy. With inflation expected to remain under control, Tanveer believes now is the perfect time for the SBP to take action.