Policy rate pause splits stakeholders

KARACHI: While foreign investors appear satisfied with the State Bank of Pakistan’s decision to keep its policy rate at 11.5 per cent, local businessmen have criticised the cautious approach, which they believe will stifle economic activity and hinder access to finance. Overseas Investors Chambers of Commerce and Industry (OICCI) Secretary General M Abdul Aleem views SBP’s decision as prudent and balanced, reflecting improved macroeconomic conditions while acknowledging that inflation and external risks remain elevated. The pause provides breathing space for businesses, especially as private sector credit is picking up and economic activity showed signs of recovery in June, including in…