KARACHI: Chairman of the Pakistan Chemicals & Dyes Merchants Association (PCDMA) Salim Valimuhammad has rejected the State Bank’s decision to maintain the interest rate at 12 per cent and has called for a substantial reduction. He expressed concern that the central bank’s approach does not reflect economic realities.

He highlighted that the country’s economic conditions are improving and inflation is declining, yet no significant reduction in the interest rate has been made. In a statement on Tuesday, Salim Valimuhammad said, “We had hoped that this time the central bank would implement a substantial cut in the interest rate. However, by keeping it at 12 per cent, the State Bank has dashed the hopes of the business community.”

He added that such policies would neither accelerate economic activity nor attract new investment. The government should ensure access to loans at lower interest rates to support businesses and introduce policies that stimulate commercial growth.

The PCDMA chairperson urged the governor of the State Bank to reduce the interest rate to a single digit in the best interest of the economy, making loans more accessible and enabling traders to expand their businesses.