FPCCI Demands 5% Single-Stroke Cut in Policy Rate

Federation of Pakistan Chambers of Commerce & Industry (FPCCI) President Atif Ikram Sheikh Wednesday said that the business, industry and trade community of Pakistan is dissatisfied with the monetary policy as it continues to be based on a heavy premium vis-à-vis core inflation. In a statement, Sheikh said that inflation is at a 9-year low in the country as per government’s own statistics, and stood at 1.5 percent in February 2025 and 2.4 Percent in January but the policy rate is 12.0 percent as of today reflecting a premium of 1050 basis points vis-à-vis core inflation. Sheikh said that after deliberations across all industries and sectors, FPCCI demands an immediate and single-stroke rate cut of 500 basis points, in the upcoming MPC meeting on March 10, 2025 to rationalize the monetary policy and align it to the vision of Special Investment Facilitation Council (SIFC) and the Prime Minister’s vision for economic growth and exports’ growth. He said that as per industry estimates, the core inflation is expected to be in the range of 1–3 percent in Q4FY25 on the back of declining prices and easing inflationary pressures.