Diverse Reactions from Business Leaders on SBP's Policy Rate Decision
By Editor • September 15, 2026 • 1 min read
In a recent announcement that has stirred varied opinions within the business sector, the State Bank of Pakistan (SBP) opted to maintain the policy rate at 11.5 percent. This decision, made by the Monetary Policy Committee (MPC), has drawn both support and criticism from different chambers of commerce across the country.
Concerns from the Federation of Pakistan Chambers of Commerce
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) voiced its dissatisfaction with the SBP's decision, deeming it counterproductive. FPCCI President Atif Ikram Sheikh highlighted that the current economic stagnation necessitated a reduction in the policy rate to single digits, arguing that the high rate continues to hinder industrial revival and stifle economic activity. Sheikh emphasized the pressing need for relief as the industry grapples with challenges such as rising energy tariffs and increased financing costs, which are exacerbating the trade deficit.
Support from Overseas Investors and Others
Conversely, the Overseas Investors Chamber of Commerce and Industry (OICCI) labeled the SBP's choice as a prudent measure given the prevailing economic conditions. They pointed to elevated inflation levels but acknowledged the benefits of stable foreign reserves and remittances, suggesting that the decision allows for continued investment planning. However, the OICCI also stressed that this pause should not replace the need for significant economic reforms.
Mixed Views on Stability and Growth
The Rawalpindi Chamber of Commerce and Industry (RCCI) expressed support for maintaining the policy rate, citing global inflation pressures due to ongoing conflicts that affect energy prices. RCCI President Usman Shaukat remarked that a steady monetary policy is essential for maintaining the stability achieved over recent years. In contrast, the Korangi Association of Trade and Industry warned that high interest rates are hampering industrial recovery and investment opportunities.
Source: www.dawn.com
