FPCCI underscores need for further reducing policy rate

LAHORE: The President of the Federation of Pakistan Chambers of Commerce and Industry, Atif Ikram Sheikh, has emphasized the urgent need to bring interest rates down to single digits to stabilize the national economy and foster business growth, suggesting that an appropriate rate would be 7 percent.

Speaking at a press conference in Lahore, Sheikh acknowledged that while Pakistan has seen reductions in electricity rates and the FPCCI’s persistent advocacy has contributed to lowering interest rates, critical challenges in the energy and financing sectors remain unresolved. He stressed that these issues continue to pose significant obstacles to the business community and require immediate government attention.

The FPCCI chief called for stronger government support for the business sector, noting that authorities have already accepted several proposals submitted by the federation. He identified high energy costs as the primary barrier preventing export growth, arguing that without a substantial reduction in the cost of doing business, achieving meaningful export expansion would remain impossible.

Sheikh warned that the combination of expensive electricity and elevated interest rates has rendered Pakistani industry uncompetitive in international markets, a situation he described as extremely concerning for the country’s economic prospects. He also drew attention to the struggling agricultural sector, urging the government to prioritize its development and improvement.

In a firm stance on fiscal policy, the FPCCI President demanded reductions in tax rates and called for special initiatives to encourage domestic investment. He categorically rejected any possibility of accepting a mini budget, warning that such measures would only impose additional financial burdens on an already strained business community.

The press conference featured addresses from several other FPCCI officials, including Senior Vice President Saqib Fayyaz Magoon, Regional Chairman Zain Iftikhar Chaudhry, Vice President Zaki Ejaz, and Chairman Capital Office Islamabad Kareem Aziz Malik, among others. The collective message from the business leadership underscored the need for comprehensive economic reforms to create a more conducive environment for trade and industry in Pakistan.

Copyright Business Recorder, 2026