KARACHI: Korangi Association of Trade and Industry (KATI) President Sheikh Umer Rehan has urged the State Bank of Pakistan (SBP) to significantly reduce the policy rate to single digits at the upcoming Monetary Policy Committee (MPC) meeting to promote industrialisation, investment and economic activity.
He said high interest rates were increasing financial pressures on the industrial sector, raising production costs and discouraging new investment projects.
Without access to affordable financing, it would be difficult for industries to expand production capacity, establish new manufacturing units, generate employment and increase exports.
Sheikh Umer Rehan said industrialists were already grappling with high electricity and gas tariffs, expensive raw materials and a heavy tax burden.
Costly bank financing further increased the cost of doing business, undermining the competitiveness of Pakistani products in both domestic and international markets.
The KATI president emphasised that the SBP should take the needs of the industrial sector, investment trends and prevailing business costs into account while formulating monetary policy.
He said an appropriate reduction in interest rates would enable industries to expand their production facilities, invest in modern technology and create new employment opportunities, thereby supporting sustainable economic growth.
He also stressed the need to ensure affordable credit for small and medium-sized enterprises (SMEs), noting that these businesses played a vital role in industrial development, employment generation and the national economy.
Sheikh Umer Rehan appealed to SBP Governor Jameel Ahmad and members of the Monetary Policy Committee to adopt a clear strategy for gradually reducing interest rates while taking the concerns of the business community into consideration.
He said a reduction in the policy rate would help accelerate industrialisation, restore investor confidence and put the national economy on a path towards sustainable growth.
Copyright Business Recorder, 2026