Cut in policy rate urged to boost business activities in Pakistan

2026-03-09 - 18:34

The business community has expressed concerns over the State Bank of Pakistan’s decision to keep the policy rate unchanged at 10.5 per cent, saying cheaper financing was essential for the growth of the industrial sector. Lahore Chamber of Commerce and Industry President, Faheem ur Rehman Saigol, said strong policy support to the industry was key to taking the country out of the prevailing economic crisis. He stated that the industrial sector was already facing many challenges, including high production costs, expensive energy and economic pressures, while global uncertainty is also affecting businesses. In such conditions, a high interest rate creates additional problems for industry because expensive borrowing discourages new investment and industrial expansion. Mr Saigol suggested strengthening the industrial sector to put the country on track to sustainable growth. He said that in the current global environment, especially with tensions in the Middle East and rising oil prices, Pakistan needs economic policies that create a supportive environment for industry, trade and investment. He expressed hope that in the upcoming monetary policy reviews, the concerns of the business community will be considered and the policy rate will be reduced so that industrial and economic activity can gain momentum. SBP decides to keep key policy rate unchanged at 10.5%