Business leaders react to State Bank of Pakistan policy rate decision

Apex trade body expresses disappointment

Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry, stated that the decision was highly contractionary. He warned that holding the benchmark interest rate at an oppressive level will continue to severely stifle economic activity across the country.

Industry demands lower borrowing costs

The trade body argued that monetary policy remained the only potent tool available to provide relief but was not utilized. Leaders demanded a reduction in the rate to single digits to help bring down the exorbitant cost of doing business.

Trade deficit shows recent rise

Sheikh noted that the central bank's approach contradicts current economic realities while the trade deficit climbed by 18.1 percent in July-August 2026. Some industry representatives backed the move, though others called for further cuts to revive investment and industrial activity.