KARACHI: When the State Bank of Pakistan monetary policy committee meets on 9th March, 26 to decide the policy rate for the next quarter, there are chances of increase in policy rate or a status quo due to massive increase in Petroleum Prices, adversely hitting the cost of doing business and bringing a wave of price hike and inflation, said Ateeq Ur Rehman, an economic and financial analyst.
Consequently, this unexpected jump in oil prices has severely disrupted business activities, rising cost of manufacturing and production, he said.
The transport fares across the board have risen. The overland transport, public transport, private taxi/ rickshaw, railway, and airlines have increased their fare, thus impacting consumer goods, groceries, fruit, vegetables, necessary daily use items and medicines to be more expensive. Also, there are heavy implications on energy, logistics and supply chain, sending unemployment to a critical breaking point. Tremendous raise in inflation is on the cards affecting industry, businesses and competitiveness, he said, adding declining exports are widening trade deficit.
Ultimately, an increase in policy rate will further affect the insufficient credit limit of exporters, access to finance of SMEs, and cost of credit for industries and subsidised loans to agriculture, he said.
Copyright Business Recorder, 2026
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