Business, industry & trade community of Pakistan is disappointed with the monetary policy: President FPCCI Atif Ikram Sheikh
KARACHI ( Web News )
Atif Ikram Sheikh, President FPCCI, has apprised that the business, industry and trade community of Pakistan is disappointed with the monetary policy as it continues to be based on a heavy premium vis-à-vis Consumer Price Index (CPI) and the State Bank of Pakistan (SBP) has maintained status quo in the policy rate in its Wednesday meeting.
Atif Ikram Sheikh highlighted that the CPI, as per government’s own statistics, stood at 3.20 percent in June 2025; but, the policy rate continues to be 11.0 percent as of today – which reflects a premium of 780 basis points (bps) as compared to inflation and it makes no economic sense, he added.
Atif Ikram Sheikh continued that, after deliberations from the apex trade and industry platform with all industries and sectors, FPCCI had demanded a single-stroke rate cut of 500 basis points during the Wednesday’s monetary policy committee (MPC) meeting to rationalize the key policy rate; and, align it to the vision of special investment facilitation council (SIFC) – and, the Prime Minister’s vision for industrial development, import substitution and export growth.
High interest rate unjustified despite lower inflation,
President SITE Association of Industry, Ahmed Azeem Alvi has expressed deep concern over the State Bank of Pakistan’s decision to maintain the policy rate at 11 %. In a statement, he said that by disregarding the longstanding demand of the business community to bring the interest rate into the single digits, the central bank has dashed their hopes for economic recovery and growth.
Alvi questioned the rationale behind not reducing the policy rate despite a visible decline in inflation. He urged the Finance Minister and the Governor of the State Bank to explain the justification for this decision and take the business community into confidence.
“Pakistan is currently receiving encouraging signals from the international community in the wake of its recent success in the Marka-e-Haq. At such a critical juncture, this decision seems ill-timed and presents a potential obstacle to the country’s economic progress,” he said. He added that the nation is united, and Pakistan stands on the brink of achieving significant milestones—making this an opportune moment for bold and forward-looking economic decisions.
SAI Chief reiterated the business community’s demand for a gradual reduction of the policy rate to the range of 5 to 6 %, which, in his view, would stimulate economic activity, boost investment, and generate employment. However, by retaining the rate at 11 percent, the authorities have disappointed investors and industrialists alike.
Ahmed Azeem Alvi expressed hope that the government, along with the Finance Minister and the Governor of the State Bank, would recognize the urgency of the situation, engage with the business sector, and take concrete steps towards restoring economic confidence and accelerating recovery