PVMA urges SBP to cut interest rate to 6%

The Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), Sheikh Umer Rehan, has called on the State Bank of Pakistan (SBP) to cut the policy interest rate to 6%, citing improving economic indicators.

In a statement on Monday, Rehan said the current 11% interest rate is among the highest in the region and is damaging industrial growth, employment, and economic activity. He warned that with inflation falling to 3.2%, foreign exchange reserves above $12 billion, and a stable exchange rate, there is clear justification for a rate cut.

He noted that regional economies like India, Bangladesh, and Sri Lanka have interest rates between 6% and 8% to support industry, while Pakistan's elevated rate hampers recovery and production planning.