Karachi: The State Bank of Pakistan dropped interest rate by 1 percent, bringing it to seven percent, the lowest in the country’s history today.

Announcing monitory police, State Bank Governor Ashraf Wathra told journalists that the new policy will be applicable from May 25.

He said the cut in the interest rate would create opportunities for employment, business and investment.

Applauding the announcement, business fraternity urged the State Bank to instruct commercial banks to release more loans to private sector.