SEO Headline: FPCCI President Atif Ikram Sheikh criticizes SBP for keeping policy rate at 11%, calls for single-digit rate to boost growth
Independent Report
Karachi / October 27, 2025
SEO Headline: FPCCI President Atif Ikram Sheikh criticizes SBP for keeping policy rate at 11%, calls for single-digit rate to boost growth
President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram Sheikh, on Monday strongly criticized the State Bank of Pakistan’s decision to maintain the policy interest rate at 11%, describing it as “anti-growth” amid current economic conditions. He warned that the decision could negatively impact business sentiment and the broader economy.
Sheikh emphasized that with inflation having declined to 5.6% in September 2025, the policy rate should ideally be reduced to 7% to align with economic realities and foster growth. He added that a reduction could have decreased the government’s debt burden by around PKR 3,500 billion, offering critical fiscal relief.
Highlighting regional comparisons, Sheikh noted that Pakistan’s interest rate remains significantly higher than neighboring countries, restricting investment and economic activity. He called for a single-digit interest rate to enable businesses to remain competitive and stimulate growth.
Supporting his view, FPCCI Senior Vice President Saquib Fayyaz Magoon stated that high interest rates increase production costs, fueling inflation, while a reduced rate would make goods and services more affordable and encourage economic expansion. Magoon also referenced assurances from Federal Finance Minister Muhammad Aurangzeb that a rate cut was expected in the coming months, calling the decision to maintain the current rate a setback for business expectations.
FPCCI Vice President and Sindh Regional Chairman Abdul Mohamin Khan warned that maintaining the high interest rate could severely undermine the business environment, discourage investment, and hinder economic recovery. He urged the State Bank to adopt measures supporting businesses, reducing borrowing costs, and stabilizing prices.
“The business community is the backbone of Pakistan’s economy,” Khan said. “A conducive monetary policy with a single-digit interest rate is essential to boost industrial output, create jobs, and stabilize prices
