The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government and the State Bank of Pakistan (SBP) to reduce the policy rate to single digits to support economic growth and business activity.
FPCCI President Sheikh said lower borrowing costs would help small and medium-sized enterprises, traders, and large-scale manufacturers invest in technology, expand value-added production, and compete with regional businesses. He also warned that high interest rates increase debt-servicing costs for the government and private borrowers, adding to fiscal pressure and restricting economic growth.
The business body called on the central bank, federal government, and economic policymakers to adopt a growth-oriented monetary policy, align interest rates with regional benchmarks, and consult the business community before introducing measures that directly affect economic activity.