SM Tanveer demands single-digit mark-up in upcoming monetary policy
Business
Maintaining double-digit interest rates contradicts government’s efforts to promote economic growth
LAHORE (Web Desk) – United Business Group (UBG) Patron-in-Chief SM Tanveer has urged the State Bank of Pakistan (SBP) to reduce the mark-up rate to single digits in the upcoming monetary policy, emphasising that it is essential to revive economic activity in the country.
Tanveer stated that the business community had anticipated a reduction to single-digit mark-up rates in the previous monetary policy, but their expectations were not met. He expressed concern that the SBP’s reluctance to cut interest rates is hindering economic recovery.
"The current monetary policy is tightening liquidity and raising borrowing costs, which is detrimental to businesses and industries," he said in a statement.
He further highlighted that the federal government’s efforts and the initiatives of the Special Investment Facilitation Council (SIFC) aimed at reviving the economy are being undermined by the SBP’s stance.
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“Maintaining double-digit interest rates contradicts the government’s efforts to promote economic growth,” he added.
Tanveer also pointed out that the country's economic growth has been sluggish and stressed that a single-digit mark-up rate would help stimulate investment, enhance business confidence, and boost overall economic activity.
He called on the SBP to immediately lower the mark-up rate to single digits to meet the expectations of the business community and support economic expansion. “A reduced interest rate would offer much-needed relief to businesses by making credit more affordable, thereby enabling investment and growth,” he stated.
The business community is keenly awaiting the upcoming monetary policy announcement, hoping that the SBP will consider their concerns and take steps to stimulate economic revival.
