QUETTA: Business leaders of Balochistan have demanded the State Bank to reduce the interest rate to at least two percentage points to revive the country’s economy.

Haji Ghulam Farooq Khilji, a senior leader of Quetta Chamber of Commerce and Industry (QCCI) said that a significant reduction in the SBP interest rate is essential to ensure the country’s economic revival.

Speaking at a meeting of business leaders here on Sunday, Mr Khilji said the business community of Balochistan is calling for a minimum cut of 200 basis points (2 percentage points).

He noted that in previous meetings of the Monetary Policy Committee, there was even discussions of a possible reduction of up to 500 basis points.

“We are demanding ahead of the upcoming Monetary Policy Committee meeting that the current interest rate of 11pc be immediately brought down to 9pc,” he said, adding that reducing it further to 5pc by December 2025 is vital for reviving the national economy.

He said that across the world, central banks lower interest rates during periods of low inflation to stimulate economic activity.

“For Pakistan, the only way to control inflation and ensure sustainable development is by expanding businesses and industries, promoting trade, and increasing employment opportunities,” he said.

The QCCI leader said that reducing the interest rate is key to creating a conducive environment for investment and industrial growth in the country and the province. This move, he said, would not only boost up economic activity and generate jobs, but will also help the government to achieve inflation-control targets.

He urged both the federal government and the SBP’s Monetary Policy Committee to seriously consider this demand, adding that a timely reduction in the interest rates would contribute significantly to the country’s long-term economic development.

Published in Dawn, July 28th, 2025