Lower Interest Rate Essential Despite Improving Economic Indicators; Calls for Business-Friendly Monetary Policies to Boost Industry, Exports, and Investment

Islamabad (News Reporter): 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 percent, saying the move is contrary to the expectations of the business community.

He stated that despite encouraging improvements in key economic indicators, the decision not to reduce the interest rate is a matter of concern for the country’s industrial and commercial sectors.

Atif Ikram Sheikh said that maintaining a high interest rate could adversely affect industrial production, investment, and export growth. He emphasized that reducing borrowing costs and encouraging private sector investment require bringing the policy rate down to the single-digit range.

He further stated that without access to affordable financing, industrial expansion, new investment, and the creation of employment opportunities would remain difficult. He urged the State Bank of Pakistan to take prevailing economic conditions into account in its next monetary policy review and implement a significant reduction in the policy rate to stimulate business activity, lower production costs, and support sustainable economic growth.

The FPCCI President also called on policymakers to adopt business-friendly monetary policies that promote economic growth, industrial development, and exports, enabling the national economy to achieve long-term stability on a sustainable basis.