Karachi, March 9, 2026: Khurram Ijaz, General Secretary of Businessmen Panel Progressive (BMPP) and former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has expressed disappointment over the decision of the State Bank of Pakistan (SBP) to keep the policy rate unchanged at 10.50%, warning that the move could further strain industrial activity and exports.
In a statement, Khurram Ijaz said the business community had expected a reduction in the policy rate to ease financial pressure on manufacturers and investors.
“The decision to maintain the policy rate at 10.50 percent is disappointing for the business community,” he said. “At a time when industries are already struggling with high production costs, expensive financing will only discourage investment and slow industrial growth.”
He pointed out that manufacturers are facing rising electricity and gas tariffs, which have significantly increased production costs.
“Industries are already under immense pressure due to high energy prices,” Ijaz stated. “Keeping borrowing costs high leaves little room for businesses to expand operations or increase output.”
Ijaz also noted that central bank officials had acknowledged a decline in exports alongside an increase in imports, which he described as a worrying indicator of slowing economic momentum.
“In such circumstances, a policy rate cut of at least one to one-and-a-half percentage points would have provided much-needed relief to the industrial sector and encouraged new investment,” he said.
He further emphasized that bringing the policy rate into single digits could have helped exporters access cheaper financing, allowing them to expand production and compete more effectively in global markets.
“Lower financing costs would strengthen export-oriented industries and support overall economic growth by boosting industrial output and exports,” he added.
The BMPP General Secretary urged the government and the central bank to carefully consider the challenges faced by the industrial and export sectors in future monetary policy decisions.
“Supportive and business-friendly policies are essential to restore investor confidence, enhance exports, and ensure sustainable economic growth,” Khurram Ijaz concluded.