The State Bank of Pakistan's decision to keep its policy rate at 11.5% has created a divide, with foreign investors viewing it as prudent given macroeconomic conditions and inflation at 11.1%. Conversely, local business associations like FPCCI strongly criticized the "contractionary" stance, arguing that elevated interest rates will severely undermine industrial revival, increase the cost of doing business, and deter new investment. They advocate for a single-digit rate to stimulate the economy and enhance competitiveness. This policy, while potentially stabilizing the PKR by attracting foreign investment, could slow domestic economic activity, influencing local gold demand as either a safe haven or a less attractive investment compared to high-yield savings.
بحوالہ / Source: www.dawn.com