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KARACHI: While foreign investors appear satisfied with the State Bank of Pakistan’s decision to keep its policy rate at 11.5 per cent, local businessmen have criticised the cautious approach, which they believe will stifle economic activity and hinder access to finance.
Overseas Investors Chambers of Commerce and Industry (OICCI) Secretary General M Abdul Aleem views SBP’s decision as prudent and balanced, reflecting improved macroeconomic conditions while acknowledging that inflation and external risks remain elevated.
The pause provides breathing space for businesses, especially as private sector credit is picking up and economic activity showed signs of recovery in June, including in automobiles, cement, fertiliser offtake and business sentiment, he said.
However, inflation at 11.1pc in June remains above the 5-7pc target range, while risks from global commodity prices, Middle East tensions, food prices and possible fiscal slippages require caution, he added.
