PESHAWAR: The business community sharply reacted over the State Bank of Pakistan’s decision to keep the policy rate at 11.5 percent again, describing the interest rate “status quo” would be harmful for the industrial and business growth. The businessmen requested the Central Bank to bring it down to a single digit, with a target of five percent in next three months to boost economic and commercial activities and economic turnaround in the country.
The business community also urged the central bank to realign its monetary policy with ground realities, warning that the current interest rate regime is strangling the economy and burdening taxpayers.
Junaid Altaf, President, Muhammad Nadeem, Senior Vice President and Sabir Ahmad Bangash, Vice President along with the entire executive committee of the Sarhad Chamber of Commerce and Industry in a joint statement here on Wednesday expressed high disappointment over the SBP’s decision.
Though, the SCCI senior office-bearers acknowledged the State Bank of Pakistan commitment to maintaining macroeconomic stability and stated recent monetary policy reflects a cautious approach toward inflation management.
However, they observed Pakistan is currently experiencing cost-push inflation rather than demand-pull inflation.
Furthermore, they observed the higher fuel prices in the global market, rising cost of transportation, the increased electricity and gas tariffs, supply chain disruptions arising from tension in the Middle East and food prices pressures were behind the major reason for the rising inflation.
President Janaid Altaf urged the government to pay serious attention to reducing impacts of rising fuel and energy costs through targeted measures, efficient energy management and improvements in supply chain.
He called for introduction of special tariff rationalization measures for the export-oriented and manufacturing sector to preserve competitiveness.
He furthermore suggested dedicated concessionary financing schemes should be expanded to ensure that SMEs remain able to invest and generate employment despite prevailing economic challenges.
President Junaid Altaf stressed the need for provision of targeted incentives for KP’s industries to offset higher transportation and logistics costs arising from their geographic location.
The SCCI chief recognised the State Bank’s efforts to safeguard macroeconomic stability. However, he said the business community believes that the current inflationary trend is primarily driven by fuel, energy and supply-side pressures rather than excessive domestic demand.
President Juanid Altaf said the business community strongly believes that Pakistan cannot achieve sustainable industrial growth by fighting supply-side inflation with demand-side instruments alone.
Copyright Business Recorder, 2026
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