As the State Bank of Pakistan (SBP) gears up to announce its latest monetary policy decision on Wednesday, July 30, prominent business leader S.M. Tanveer has made a strong appeal to reduce interest rates Pakistan to single digits, calling it a crucial step toward economic recovery.

Tanveer, who serves as the Patron-in-Chief of the United Business Group (UBG), believes that slashing the current interest rate from 11% to 6% could be a game-changer. “It’s time for the State Bank to take bold action. Single-digit interest rates are essential for economic growth and development,” he said in a statement released ahead of the Monetary Policy Committee meeting.

Tanveer argues that with inflation down to 4% and the Consumer Price Index (CPI) at just 0.3%, there’s little justification for keeping the benchmark interest rate in double digits. He insists that an aggressive policy shift is needed, not just to provide relief to borrowers, but also to reignite industrial growth, support exporters, and stimulate job creation.

Calling the current 11% rate “unnecessarily high,” Tanveer claims that a substantial cut would save the government Rs3.5 trillion annually and increase the competitiveness of Pakistani exports in global markets. He further emphasised that lowering the rate would ease the burden on businesses, particularly small and medium enterprises (SMEs), which are struggling to survive under high borrowing costs.

The business community is closely watching the upcoming SBP decision, hoping for a policy shift that reflects the easing inflation and sluggish economic activity. While most market analysts are predicting a modest rate cut of 1% to 1.5%, Tanveer is urging the central bank to go further and reduce interest rates Pakistan decisively.

“This is the right time,” Tanveer said. “Inflation is under control, and the economy needs a push. A single-digit rate will send the right signal to investors and industries.”