PIBF Concerned Over Status Quo in Monetary Policy, Demands Policy Rate Cut

PIBF concerned over status quo in monetary policy as the Pak International Business Forum (PIBF) has expressed strong reservations over the decision to maintain the existing policy rate, stating that it has gone against the clear expectations of the country’s business community.

In a joint statement, PIBF President Muhammad Ejaz Tanveer, General Secretary Malik Mahmood, Chief Organizer Muaz Qazi, and Coordinator R&D Tahir Mavia said that the business community had clearly demanded a 3.5 percent reduction in the policy rate, but these concerns were not addressed by the government and monetary authorities.

The forum stated that the continuation of the current tight monetary policy is creating serious challenges for businesses across the country. “Despite repeated calls from stakeholders, the decision to maintain the status quo reflects a lack of consideration for the difficulties faced by the productive sectors,” the statement added.

PIBF highlighted that the inflation rate has remained around 5 percent for several consecutive months, making it unjustifiable to keep interest rates in double digits under the prevailing economic conditions. The forum stressed that high borrowing costs are discouraging private sector investment and increasing the financial burden on industries.

The business forum further warned that a prolonged period of restrictive monetary policy would lead to a slowdown in industrial activity, reduced expansion plans, and limited job creation. PIBF emphasized that timely reduction in the policy rate is essential to restore business confidence, stimulate economic activity, and support sustainable growth.

PIBF urged the government and monetary authorities to review their stance and adopt a business-friendly monetary policy that aligns with current economic indicators and supports the revival of industrial and commercial sectors.