BY: Hurish Shah:
ISLAMABAD—President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram Sheikh, has expressed disappointment over the State Bank of Pakistan’s decision to keep the policy interest rate unchanged at 11.5%, calling it contrary to the expectations of the business community.
He said that despite improving economic indicators, the decision not to reduce the policy rate is a matter of concern for the industrial and commercial sectors. According to him, the high interest rate is likely to slow industrial production, discourage investment, and hamper export growth.
Atif Ikram Sheikh stressed that bringing the policy rate down to a single-digit level is essential to reduce the cost of doing business and encourage private sector investment. He noted that affordable financing is crucial for industrial expansion, attracting new investment, and creating employment opportunities.
He urged the State Bank of Pakistan to take prevailing economic realities into account in its next monetary policy review and announce a significant cut in the policy rate. He added that a lower interest rate would stimulate business activity, reduce production costs, boost exports, and support sustainable economic growth through business-friendly monetary policies
