Karachi, September 15, 2025 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has voiced strong disappointment over the State Bank of Pakistan’s (SBP) decision to keep the policy interest rate unchanged at 11%.
Business leaders described the decision as “incomprehensible” in light of the country’s current economic conditions and falling inflation.
FPCCI President Atif Ikram Sheikh argued that the policy rate should have been reduced to a range of 6–7% to stimulate growth and bring relief to industries. He noted that inflation had already dropped to 3% in August 2025, according to official statistics, making a case for a more business-friendly monetary stance. Sheikh further explained that a rate cut would have eased the government’s debt burden by nearly PKR 3,500 billion, creating fiscal space for development and investment.
Highlighting regional comparisons, Sheikh observed that Pakistan’s interest rate remains significantly higher than neighboring economies, which discourages investment and undermines competitiveness. “Maintaining such a high rate stifles business activity, increases the cost of capital, and deters local as well as foreign investors,” he stated.
Senior Vice President of FPCCI, Saquib Fayyaz Magoon, emphasized that high borrowing costs directly push up production expenses, fueling inflation instead of controlling it. He explained that a single-digit interest rate would reduce costs for manufacturers, allowing goods and services to become more affordable for consumers while improving economic circulation.
Meanwhile, Abdul Mohamin Khan, FPCCI Vice President and Regional Chairman for Sindh, cautioned that the unchanged policy stance will discourage new investments and delay Pakistan’s economic recovery. He stressed that the business community is the backbone of the national economy and requires a supportive monetary framework to thrive.
Calling for urgent reconsideration, FPCCI leaders urged SBP to revise its policy rate in line with ground realities, promote industrial growth, create jobs, and stabilize prices to strengthen Pakistan’s economic future.