Business Industry Demands SBP to Cut Key Interest Rate to 6%

Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has demanded that the interest rate be reduced to six percent in the Monetary Policy meeting on July 30. This measure is crucial to tackle the challenges facing the national economy and to boost industrial and commercial activities. The country’s inflation rate has rapidly decreased to four percent, which is a welcome development. In such a situation, the current high interest rate of eleven percent is not only inappropriate but has also become a major obstacle for the private sector. Addressing the Chambers of Commerce and Trade Associations, FPCCI President Atif Ikram stated that the State Bank of Pakistan is set to announce its monetary policy on July 30. He urged them to provide strong arguments and statements in favor of reducing the interest rate to six percent. He emphasized that a reduction to six percent is essential for revitalizing industrial activity, enhancing export competitiveness, stimulating private sector investment, and saving the government 3.5 trillion rupees in debt servicing. President Atif Ikram further elaborated that it has become impossible to run businesses at the current interest rate, as the cost of financing has exceeded limits, adversely affecting industrial production, employment, and exports. He stressed that unless the cost of doing business is reduced, the expansion of industrial activities and the investment climate cannot improve.