Rate Hike Sparks Business Divide

The recent rate hike by the State Bank of Pakistan (SBP) has sparked a divide within the business community. While foreign investors welcomed the 50bps increase to 12 per cent, the domestic business sector expressed concerns over its impact on industrial growth and export competitiveness.

Abdul Aleem, Secretary General of the Overseas Investors Chamber of Commerce and Industry, acknowledged the SBP’s decision, stating it was necessary to manage inflationary pressures and ensure macroeconomic stability amid global energy price risks.

The SBP’s move has drawn mixed reactions, with foreign investors supporting the decision to curb inflation, while industry representatives argue it may hinder economic growth and export capabilities.