KARACHI: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has strongly denounced the State Bank of Pakistan’s decision to increase the policy rate by 0.5% to 12%, terming it counterproductive and disastrous for the economy.
Thank you for reading this post, don't forget to subscribe!FPCCI President Mr. Atif Ikram Sheikh expressed profound concern and disapproval, stating that the move deals a severe blow to economic stabilization, dampens industrial expansion, and erodes export competitiveness.
He said further inflating borrowing costs when manufacturers are already facing unprecedented operational overheads, soaring utility tariffs and severe liquidity constraints is a step in the wrong direction.
FPCCI demanded immediate recalibration of monetary policy and bringing the rate down to single digits, noting that Pakistan’s inflation is driven by supply-side bottlenecks and energy costs, not excess demand.
“High interest rates have turned borrowing into an unsustainable liability, forcing businesses towards closure without achieving price stability,” Sheikh said, urging a pro-growth monetary stance aligned with regional benchmarks.
