Karachi, April 26, 2026 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the State Bank of Pakistan (SBP) to refrain from tightening monetary policy at its upcoming Monetary Policy Committee meeting scheduled for April 27, warning that higher interest rates could undermine fragile economic recovery.
FPCCI President Atif Ikram Sheikh said on Sunday that any increase in the policy rate would be detrimental to business activity, particularly at a time when firms are already grappling with uncertainty stemming from regional developments.
“The Monetary Policy Committee meeting will be held tomorrow; an increase in the interest rate should be avoided,” Sheikh said in a statement, emphasizing that current inflationary pressures are largely temporary.
He argued that recent inflation has been driven by short-term external factors linked to the regional situation, and projected that average inflation would hover around 7.5% over the next 12 months. “There is no need to adjust the interest rate in response to temporary price pressures,” he added.
Calling for a pro-growth approach, Sheikh stressed that a reduction in borrowing costs would help stimulate investment, boost industrial output, and create employment opportunities. He warned that persistently high interest rates risk slowing industrial and commercial activity, potentially dampening overall economic momentum.
Pakistan’s business community is increasingly advocating for policy continuity and caution amid geopolitical uncertainty. Sheikh noted that adopting a business-friendly stance is critical to maintaining investor confidence and sustaining economic stability.
He concluded by urging the central bank to strike a balance between controlling inflation, managing global price trends, and supporting domestic growth, rather than relying on aggressive monetary tightening.