Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has strongly criticized the State Bank of Pakistan’s decision to maintain the policy interest rate at 11%, calling it “incomprehensible” in light of the current economic conditions. Sheikh expressed deep concerns over the adverse impact of this decision on the business environment and the broader economy.
Atif Ikram Sheikh emphasized that, given the prevailing inflation rates, the policy interest rate should ideally be reduced to a range of 6-7% to align with economic realities and foster growth. He highlighted that a reduction in the interest rate could have led to a significant decrease in the government’s debt burden by approximately Rs. 3,500 billion, providing much-needed fiscal relief.
Sheikh highlighted that inflation has come down to 3% in the month of August 2025 as per the government’s own statistics. “Pakistan’s interest rate is significantly higher than those in other countries in the region,” Sheikh noted, pointing out that the elevated rate stifles economic activity and discourages investment. He stressed that for businesses to thrive and remain competitive, the policy rate must be brought down to a single-digit figure.
Mr. Saquib Fayyaz Magoon, SVP FPCCI, underscored that maintaining high interest rates directly impacts production costs, which in turn fuels inflation. “A single-digit interest rate would lower production costs, making goods and services more affordable and ultimately contributing to a reduction in inflation,” he explained. He further noted that high interest rates restrict currency circulation, hampering economic activity and growth.
SVP FPCCI also referenced assurances from Federal Finance Minister Muhammad Aurangzeb, who had previously indicated that a reduction in the policy rate was forthcoming. The decision to maintain the status quo, therefore, comes as a setback to the business community’s expectations.
Abdul Mohamin Khan, VP & Regional Chairman Sindh, FPCCI warned that keeping the interest rate unchanged will severely undermine the business environment, discourage investment and hinder economic recovery. He urged the State Bank to reconsider its stance and adopt measures that support businesses, reduce borrowing costs and stimulate economic growth.
Abdul Mohamin Khan added that the business community is the backbone of Pakistan’s economy, stated. “A conducive monetary policy with a single-digit interest rate is essential to boost industrial output, create jobs and stabilize prices. We call on the State Bank to take immediate action to address these concerns and align its policies with the needs of the economy.
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Tell mr fpcci to put his cci up his A.$.$
These clowns want interests rates to lower while charging high prices
Bring prices down first. Pay your taxes
They default on their debt and push costs on to other people . Businesses should pay their taxes..
The reason he wants interest rates to lower is bcz businesses deduct loan repayments from taxes. Thus they can evade taxes. While getting record profits.
Pay your taxes or go bankrupt
Abdul Mohamin Khan added that the business community is the backbone of Pakistan’s economy,
No it’s the tax payer that’s the backbone . Without tax payer you’d never even own anything . You’d be cleaning toilets in Mexico or working as a daily wages.
The spineless business desk didn’t ask him at all.
He claimed reduction in interest rates would reduce the govt debt . Which is false since it makes debt rise faster.
If debt is cheaper , people would go for it.
Policy rate should be increased so these looters cannot get cheap debt and impose their default upon the tax payer.