FPCCI President Atif Ikram Sheikh has strongly criticized the State Bank of Pakistan (SBP) for keeping the policy interest rate unchanged at 11%. Sheikh described the decision as “incomprehensible,” given the current economic conditions and declining inflation rates.
Sheikh emphasized that with inflation having decreased to 3% in August 2025, the policy rate should ideally be reduced to 6-7%. He added that such a reduction could have lowered the government’s debt burden by around Rs 3,500 billion, providing much-needed fiscal relief.
The FPCCI President pointed out that Pakistan’s interest rate remains much higher than in other regional countries. This, he said, stifles economic activity and discourages investment. He stressed that lowering the policy rate to single digits is essential for businesses to remain competitive and thrive.
Sheikh further noted that high interest rates increase production costs, which in turn fuel inflation. A single-digit interest rate would reduce production expenses, making goods and services more affordable and contributing to lower inflation.
In conclusion, FPCCI President Atif Ikram Sheikh slammed SBP for keeping the policy rate unchanged at 11% and urged the central bank to reconsider its stance. He called for measures that would stimulate economic growth, reduce business costs, and ease financial burdens on both the government and the public.
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