Gohar Ejaz criticises SBP for keeping policy rate at 11%, calls decision a blow to businesses
Former caretaker finance minister and leading businessman Gohar Ejaz has strongly criticised the State Bank of Pakistan’s Monetary Policy Committee (MPC) for maintaining the policy rate at 11%, saying the decision has placed an unfair burden on taxpayers and is stifling private sector growth.
In a statement posted on X (formerly Twitter), Ejaz argued that with inflation now at just 3%, Pakistan continues to bear the region’s highest real interest rate of 8%, far exceeding neighbouring countries such as India (4%), Bangladesh (1.7%), and Thailand (2–3%).
“The fiscal deficit can only be controlled if the policy rate is brought in line with the current low inflation,” Ejaz said, stressing that the private sector cannot expand without a level playing field. He urged the MPC to cut rates by at least 150 basis points instead of keeping them unchanged.
Economic Growth Requires Prudent Monetary Policy Decisions and Equal Opportunities for Businesses
— Dr Gohar Ejaz (@Gohar_Ejaz1) September 15, 2025
Monetary Policy committee Decision to keep Policy Rates Unchanged at 11% keeps The Burden of Highest Interest Rates in the Region on Honest and Frusturated Tax Payers of Pakistan.… pic.twitter.com/XfN3fq3Hxy
Ejaz termed the committee’s move a “poor decision,” warning that keeping interest rates excessively high would discourage investment, slow down job creation, and deepen frustration among honest taxpayers and businesses already under financial pressure.
According to regional data, Pakistan’s 11% policy rate and 3% inflation translate into a real interest rate of 8% — the highest in South and Southeast Asia. By comparison, India’s real interest rate stands at 4%, Bangladesh at 1.7%, and Vietnam between 1–1.5%.