Trade & Industry Disappointed at Status Quo in Policy Rate Atif Ikram Sheikh, President FPCCI

Karachi: Mr. Atif Ikram Sheikh, President FPCCI, has apprised that the business, industry and
trade community of Pakistan is disappointed with the monetary policy as it continues to be based
on a heavy premium vis-à-vis Consumer Price Index (CPI) and the State Bank of Pakistan (SBP)
has maintained status quo in the policy rate in its Wednesday meeting.

Mr. Atif Ikram Sheikh highlighted that the CPI, as per government’s own statistics, stood at 3.20
percent in June 2025; but, the policy rate continues to be 11.0 percent as of today – which
reflects a premium of 780 basis points (bps) as compared to inflation and it makes no economic
sense, he added

Mr. Atif Ikram Sheikh continued that, after deliberations from the apex trade and industry
platform with all industries and sectors, FPCCI had demanded a single-stroke rate cut of 500
basis points during the Wednesday’s monetary policy committee (MPC) meeting to rationalize
the key policy rate; and, align it to the vision of special investment facilitation council (SIFC) –
and, the Prime Minister’s vision for industrial development, import substitution and export
growth.

Mr. S. M. Tanveer, Patron-in-Chief, UBG, noted that the CPI is expected to be in the range of 3 –
4 percent for the months of July – August 2025 as per trade, industry and economists’
expectations. Therefore, he had demanded, key policy rate should have been brought down to 6
percent in today’s monetary policy decision.

Mr. Abdul Mohamin Khan, VP FPCCI & Regional Chairman for Sindh Region, proposed that
the interest rate should come down to single digits immediately to enable Pakistani exporters to
some extent to compete in the regional and international export markets through reducing the
cost of capital in a meaningful way.

Mr. Aman Paracha, VP FPCCI, reiterated the apex body’s stance that cost of doing business; ease
of doing business and access to finance in Pakistan is at the lowest as compared to all its
competitors in the export markets.

Mr. Asif Sakhi, VP FPCCI, elaborated that, fortunately, the decisive downward trend in
inflationary pressures has been continuing for the past many months; and, the only viable
solution to get back on economic growth trajectory is to support industry and exports, he added.