FPCCI Denounces SBP’s Status Quo on Policy Rate Saquib Fayyaz Magoon, Acting President FPCCI

Karachi: Mr. Saquib Fayyaz Magoon, Acting President of the Federation of Pakistan Chambers
of Commerce and Industry (FPCCI), has expressed his profound disappointment that the State
Bank of Pakistan’s (SBP) decision to maintain the status quo on its key policy rate following
today’s Monetary Policy Committee (MPC) meeting.

The apex trade body termed the decision as "contractionary," warning that holding the
benchmark interest rate at an elevated level will continue to stifle economic activity, hamper
access to finance, and severely undermine industrial revival efforts across the country.

Mr. Saquib Fayyaz Magoon categorically denounced the central bank's cautious approach;
emphasizing that the business community had anticipated some reduction to help bring down the
exorbitant cost of doing business – and, facilitate trade & industry to cope with the economic
challenges.

Acting FPCCI Chief maintained that, in the current economic scenario, maintaining the status
quo on the policy rate is a setback to the business community's expectations as Pakistani industry
and exporters are already battling an existential crisis due to elevated energy tariffs and sky-high
financing costs.

Mr. Saquib Fayyaz Magoon, Acting President FPCCI, stressed that we cannot run our industries
or compete in global markets under such punishing financial burdens. A single-digit interest rate
is absolutely critical right now to lower production costs, make goods and services more
affordable, and effectively kickstart the economy.

Mr. Abdul Mohamin Khan, VP & Regional Chairman Sindh, FPCCI, highlighted that with core
inflation stabilizing, keeping the interest rate persistently high reflects an unjustified premium
that makes no economic sense. The continued high cost of capital remains the primary driver of
industrial closures and the inability of Pakistani exporters to remain globally competitive.

Mr. Abdul Mohamin Khan warned of the immediate negative impacts the MPC's decision will
have on commercial hubs and overall economic stability. Keeping the interest rate unchanged
will undermine the business environment, discourage essential investment, and hinder any hopes
of a swift economic recovery, he added.

The FPCCI maintains that the business community is the backbone of Pakistan’s economy – and,
conducive monetary policy with a reduced, single-digit interest rate is essential to boost
industrial output, create jobs, and stabilize prices. The FPCCI urges the SBP to urgently
reconsider its stance and adopt measures that genuinely support business continuity and growth.

The FPCCI leadership demands a clear and immediate roadmap from the SBP to aggressively
correct the monetary stance. The apex body warned that without an immediate transition to
single-digit interest rates aligned with ground realities, the national targets for export growth and
industrial expansion for the current fiscal year will remain elusive.

Brig Iftikhar Opel, SI (M), Retd.

Secretary General