Crisis-ridden’ steel industry urges SBP to cut interest rates

The crisis-ridden steel industry in Pakistan has urged the State Bank of Pakistan (SBP) to lower interest rates in the upcoming Monetary Policy meeting to help it overcome “existential crisis”. As it stands, the SBP's key interest rate is at a staggering 22%, a level not witnessed since early 2011. This interest rate surpasses those of many other countries, rendering Pakistan's domestic steel industry uncompetitive. While Pakistan's central bank maintains an interest rate of 22% for industries, the other regional countries enjoy significantly lower rates. The harsh reality of these interest rates makes it nearly impossible for the Pakistan’s steel industry to secure credit from financial institutions.