FPCCI demands single-digit interest rates in Pakistan

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly condemned the State Bank of Pakistan's decision to increase the policy rate by 0.5 percent, bringing it to 12 percent. FPCCI President Atif Ikram Sheikh stated that the high interest rate undermines the country's economic competitiveness and hinders industrial growth.

Sheikh noted that manufacturers are already struggling with high production costs, rising utility tariffs, and financial instability. He warned that the current monetary policy makes accessing loans unbearable for businesses, potentially forcing companies to limit or cease operations, which would negatively impact investment and employment.

According to the FPCCI, the primary drivers of inflation are rising energy prices, supply chain disruptions, and financial irregularities. The federation has urged the government and the State Bank to revise monetary policy and return interest rates to single digits to support small and medium-sized enterprises and the broader industrial sector.