LAHORE: Zain Iftikhar Chaudhry, Vice President and Regional Chairman of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has called upon the State Bank of Pakistan to implement a substantial cut in the policy rate. He emphasized that such a move is essential to consolidate recent economic improvements, bring down production costs, enhance export competitiveness, and curb inflation.
Proposing a reduction in the policy rate from the current 11 percent to 6 percent, he stated that this long-overdue adjustment would not only address a key demand of the business community but also set the national economy on a stable and sustainable growth trajectory.
He highlighted that comparable regional economies maintain much lower interest rates, which has fuelled their consistent export growth. In contrast, Pakistan’s high policy rate continues to inflate production costs, diminishing the competitiveness of domestic products in both regional and international markets.
Zain Iftikhar Chaudhry further noted that collaborative efforts between the government and the private sector have led to steady improvements in Pakistan’s economic indicators — progress that has received global recognition. Pakistan’s international credit rating has improved, the stock market has reached historic highs, exports have shown encouraging growth, and, notably, the country has posted a current account surplus for the first time in 14 years.
He also observed stabilization in the value of the Pakistani rupee and a year-on-year decline in inflation. In view of these positive developments, he urged the State Bank to move beyond traditional and overly cautious approaches, and instead adopt a more flexible and pro-growth monetary policy. Such a shift, he stressed, would promote investment and inject momentum into economic and business activities across the country.
Copyright Business Recorder, 2025
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