Interest Rate Status Quo Disappoints Pakistan's Business Community

Interest Rate Status Quo Disappoints Pakistan's Business Community

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and other trade bodies have termed the State Bank of Pakistan's (SBP) decision to keep the interest rate at 11.5% as "contractionary" and harmful to industry and exports. They had anticipated a reduction to lower the cost of doing business, facilitate trade, and revive industrial activity. Business leaders emphasized that a single-digit interest rate is critical to reduce production costs and boost the economy, warning that high financing costs are leading to industrial closures and hindering competitiveness. This continued high-interest rate environment could put upward pressure on USD/PKR due to economic slowdown concerns, potentially making imported gold more expensive in local currency.

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