The business community has called for a significant reduction in the interest rate, urging the government to bring it into the single-digit range.
President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Atif Ikram Sheikh, stated that the current policy rate is unjust and hampers economic activity. He urged the Monetary Policy Committee to reduce the interest rate by at least 5%, aligning it with the current inflation rate of 1.5%.
Sheikh emphasized that the policy rate should not exceed 3-4% to encourage business growth and investment. He reiterated the business community’s support for government policies aimed at economic improvement but stressed the need for lower borrowing costs to stimulate the economy. He also pointed out that the existing interest rate of 12% is a major hurdle to business expansion and must be reduced in today’s meeting.
Looking ahead, Sheikh urged the government to gradually lower the interest rate to a maximum of 5-6% by June 2025.
He highlighted that a lower interest rate would not only encourage new investments but also boost exports, ultimately strengthening the economy. While the economy is showing signs of stability, he insisted that business-friendly measures are essential for long-term economic growth.
