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2 clusters · 9 sources · 1 days · First seen · Last updated
Pakistan monetary policy and interest rate debate
Overview
The State Bank of Pakistan (SBP) increased its benchmark interest rate by 50 basis points, raising it from 11.5% to 12%. Governor Jameel Ahmad attributed the decision to rising international oil and commodity prices, geopolitical tensions in the Middle East, and domestic wheat supply disruptions. To support exporters, the SBP increased the financing limit for the Export Refinance Scheme from Rs1 trillion to Rs1.5 trillion.
In response, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) condemned the hike. FPCCI President Atif Ikram Sheikh argued that the high rate undermines economic competitiveness and makes accessing loans “unbearable” for businesses. The federation urged the government and the central bank to return interest rates to single digits, citing rising energy prices and supply chain disruptions as the true drivers of inflation rather than monetary policy.
Entities
State Bank of Pakistan · Pakistan · Federation of Pakistan Chambers of Commerce and Industry · Monetary Policy Committee · Jameel Ahmad
Timeline
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[BUSINESS] 3 sourcesFPCCI demands single-digit interest rates in Pakistan
The FPCCI has urged the Pakistani government to reduce interest rates to single digits following a 0.5 percent hike to 12 percent, citing threats to industrial competitiveness.
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[BUSINESS] 6 sourcesState Bank of Pakistan raises interest rate to 12%
The State Bank of Pakistan raised its policy rate to 12% due to geopolitical tensions and rising commodity prices, while also increasing remittance and export financing forecasts.
Sources
arabnews.pk · dailymeezan.com · dailytimes.com.pk · express.pk · javedch.com · pakistantimes.com · thepakistan.pk · tradechronicle.com · urdu.arynews.tv