Pakistan, July 27 -- The business community has strongly urged the State Bank of Pakistan (SBP) to slash the interest rate by 500 basis points ahead of the upcoming Monetary Policy Committee meeting on July 30. Industry leaders say the current 11 percent policy rate is no longer justified, especially as inflation has dropped to 3.2 percent. They argue that lower rates are essential to support struggling industries, boost employment, and restore business confidence.

Junaid Naqi, President of the Korangi Association of Trade and Industry, said the industrial sector is under immense pressure, with factories running below capacity and new investments drying up. He explained that the current interest rate discourages production and exports, m...