Prime Minister Shehbaz Sharif has welcomed the State Bank of Pakistan’s decision to cut the policy interest rate by 50 basis points, calling it a positive signal for the country’s economic direction and a relief-oriented step for businesses and the general public.

In an official statement issued on Monday, the prime minister said the reduction reflects improving macroeconomic indicators and growing confidence in Pakistan’s economic recovery. He noted that lower borrowing costs will ease pressure on businesses while also providing indirect relief to consumers.

Shehbaz Sharif credited the government’s economic team for the development, stating that their consistent efforts are beginning to show tangible results. He specifically commended Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kayani, the finance secretary, and other officials involved in steering economic reforms.

According to the prime minister, Pakistan has entered a phase of economic stability after navigating a challenging period marked by inflation, fiscal constraints, and external pressures. He said that the country is now moving gradually but steadily toward sustainable growth and development.

The interest rate cut is expected to have wide-ranging effects across multiple sectors. Lower rates typically reduce the cost of financing for businesses, encourage investment, and support expansion plans that were previously delayed due to high borrowing costs.

Shehbaz Sharif emphasized that small and medium-sized enterprises stand to gain the most from this decision. He noted that SMEs form the backbone of Pakistan’s economy, contributing significantly to employment and local production, yet they are often the most vulnerable to high interest rates.

The prime minister also highlighted the importance of soft loans becoming more accessible following the rate cut. He said improved credit availability will help entrepreneurs, traders, and manufacturers revive activity, invest in capacity building, and create new job opportunities.

Acknowledging the broader economic journey, Shehbaz Sharif recognized the sacrifices made by both the business community and the general public in achieving the current level of stability. He said responsible fiscal measures and patience during difficult times were necessary to restore confidence in the economy.

The government, he added, remains focused on providing maximum relief to citizens through sustained economic improvement. He stressed that monetary easing, combined with structural reforms and prudent fiscal management, will help ensure long-term stability rather than short-term gains.

Economic analysts view the rate cut as a cautious but encouraging move, particularly as inflation shows signs of moderation and foreign exchange reserves stabilize. However, they also stress the need for continued policy consistency to maintain investor confidence.

The prime minister concluded by reiterating the government’s commitment to pro-growth policies that balance economic discipline with public relief, stating that further positive steps will follow as conditions allow.