The State Bank of Pakistan has kept its policy rate unchanged at 11.5%, a decision that has immediately split opinion between foreign investors and local business leaders.
While overseas capital appears content with the central bank’s stance, domestic industry groups argue the move is contractionary and risks further dampening economic activity.
Foreign investors, represented by the Overseas Investors Chambers of Commerce and Industry, have signaled support for the status quo.
Their satisfaction suggests that stability in monetary policy is currently viewed as a positive signal for capital retention and currency support in Pakistan’s volatile market environment.
In contrast, the Federation of Pakistan Chambers of Commerce and Industry has condemned the decision, labeling it contractionary.
Local businessmen argue that maintaining high borrowing costs during a period of economic fragility will continue to weigh on domestic demand and corporate profitability.