KARACHI: The decision of State Bank of Pakistan (SBP) to lower the policy rate by 50 basis points to 10.50pc drew mixed reactions on Monday, with a foreign investors’ body welcoming it while the country’s wider business community criticised it as marginal and ineffective for boosting local production and exports.

The Overseas Investors Cham­ber of Commerce and Industry (OICCI) viewed the rate cut as a prudent measure.

“The State Bank has taken a cautious and measured step to ease financing conditions,” OCCI’s Secretary General and Chief Executive Abdul Aleem said.

Mr Aleem said the unexpected reduction is positive and will help stimulate business activities by lowering borrowing costs while preserving overall economic stability.

MNCs’ association terms SBP move ‘cautious’ for fostering stability

He added that the chamber notes that a gradual approach “allows businesses to plan investment decisions with greater confidence and helps ensure that the impact of ease remains aligned with sustainable economic growth........

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