Karachi, March 9, 2026 – Abdul Rehman Fudda, President of the Site Association of Industry (SAI), has expressed disappointment over the State Bank of Pakistan’s (SBP) decision to maintain the policy rate at 10.5%, warning that the status quo could put additional pressure on industrial activity and exports.
In a statement, Fudda said the business community had hoped for a reduction in the policy rate to ease financial burdens on manufacturers. “Keeping borrowing costs high discourages investment and hampers industrial expansion at a time when production costs are already soaring due to expensive electricity and gas,” he noted.
The SAI president highlighted that central bank officials themselves have observed a decline in exports alongside rising imports, signaling a slowdown in economic activity. He suggested that a policy rate cut of at least 1 to 1.5 percentage points could have provided much-needed relief to the business sector, enabling manufacturers to access cheaper financing and increase output.
Fudda emphasized that lowering the rate to single digits would support exporters in securing affordable bank loans, enhancing their competitiveness in international markets while stimulating industrial growth.
He urged both the government and the SBP to consider the challenges faced by the industrial and export sectors when shaping future monetary policies. “Supportive and growth-oriented policies are essential to ensure economic stability, boost industrial output, and strengthen Pakistan’s exports,” he added.