Pakistan, Aug. 14 -- The economic outlook is showing signs of stability, but the debate over interest rates is far from over. While Finance Minister Aurangzeb has pointed to the possibility of lowering interest rates, the central bank has kept the monetary policy rate steady at 11pc since May.

On the other hand, many in the business community believe borrowing costs remain too high for growth to flourish. Lower interest rates make loans cheaper, encouraging investment in businesses, housing and agriculture. They also ease the repayment burden on existing debt.

With inflation and core inflation both cooling, there is now space to consider another rate cut before the year ends. Bringing rates down could inject fresh energy into the econom...