The Rawalpindi Chamber of Commerce and Industry (RCCI) President, Usman Shaukat, has expressed strong reservations over the State Bank of Pakistan’s (SBP) decision to increase the policy rate by 100 basis points to 11.50%.
Reacting to the Monetary Policy Committee’s decision announced, the RCCI President termed the move as unfavorable for business and industrial growth, especially at a time when the economy is already navigating global uncertainties.
He stated that given the ongoing geopolitical tensions, particularly the Iran–US/Israel conflict, the business community had expected the central bank to maintain the policy rate. He noted that diplomatic efforts are underway and a ceasefire has raised hopes for stability, making the rate hike untimely.
“The private sector is under immense strain, and the SBP’s decision is further exacerbating the challenges faced by manufacturers and exporters,” Usman Shaukat said.
He emphasized that high interest rates increase the cost of doing business, discourage investment, and hamper export competitiveness, ultimately slowing down economic activity.
RCCI urged the Government of Pakistan and the State Bank to review and reconsider the policy stance at the earliest opportunity. The Chamber reiterated its demand to bring down the policy rate to single digits, in line with earlier commitments made to the business community, once the regional situation stabilizes.
