Karachi, January 26, 2026 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has voiced serious concerns over the State Bank of Pakistan’s (SBP) decision to maintain the policy rate at 10.5%, urging the central bank to reconsider its stance amid slowing business momentum.
Atif Ikram Sheikh, President of FPCCI, criticized the decision, saying it ignores the needs of the business community and could hinder economic growth.
Sheikh highlighted that the FPCCI had clearly demanded a reduction of the policy rate by 3.5%, but the government did not heed these calls. He emphasized that inflation has remained around 5% for several months, making it unnecessary to maintain double-digit interest rates, which are putting additional pressure on industries and exporters.
The FPCCI stressed that to achieve export targets, maintain industrial growth, and stabilize the Pakistani rupee, it is imperative to reduce the policy rate immediately to 7%. Sheikh warned that failure to address these issues could slow industrial activity, impede investment, and weaken the country’s trade balance, affecting overall economic stability.
Business leaders insist that a lower interest rate environment will provide relief to exporters and domestic industries, boosting economic activity and employment. The FPCCI urged policymakers to adopt a pro-business approach in upcoming monetary decisions, ensuring sustainable growth while supporting Pakistan’s external trade and foreign exchange stability.
This development adds pressure on the SBP to balance inflation control with economic growth, highlighting growing tensions between regulatory policy and business expectations.