Pakistan, July 26 -- Industry leaders and business groups in Pakistan have urged the State Bank of Pakistan (SBP) to reduce the policy interest rate to between 5 and 6 percent. They made the demand ahead of the upcoming Monetary Policy Committee (MPC) meeting to align Pakistan's borrowing costs with regional economies and ease rising business expenses.

Karachi Chamber of Commerce and Industry (KCCI) President Javed Balwani highlighted that Pakistan's lending costs are the highest in the region, hurting business growth. He compared regional interest rates, noting Vietnam at 6.3%, Cambodia 3%, Indonesia 6%, and India 5.5%. Balwani also pointed out that high energy prices-Pakistan's electricity costs nearly 16 cents per unit compared to jus...