Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), led by Acting President Saquib Fayyaz Magoon, has expressed disappointment over the State Bank of Pakistan's (SBP) decision to maintain the current policy rate. According to the FPCCI, the central bank's decision, announced after the Monetary Policy Committee (MPC) meeting, is seen as contractionary and detrimental to economic growth.

The FPCCI stated that keeping the interest rate high would stifle economic activity, limit access to finance, and hinder efforts to revive the industrial sector. Mr. Magoon emphasized the business community's expectation of a rate reduction to alleviate the high cost of doing business, aiding trade and industry amidst existing economic challenges.

Mr. Abdul Mohamin Khan, FPCCI Vice President and Regional Chairman Sindh, highlighted the implications of maintaining a high interest rate despite stabilizing core inflation. He argued that this approach imposes an unjustified burden and impedes the competitiveness of Pakistani exporters. The FPCCI warns that the unchanged rate could negatively impact commercial hubs and overall economic stability, deterring investment and delaying economic recovery.

The FPCCI asserts that a reduced, single-digit interest rate is crucial to boosting industrial output, job creation, and price stabilization. The trade body calls for the SBP to reconsider its monetary stance and provide a roadmap for transitioning to an interest rate that aligns with economic realities to meet national targets for export growth and industrial expansion.