PIBF Concerned Over SBP Decision to Keep Policy Rate Unchanged

The Pak International Business Forum (PIBF) has expressed serious concern over the State Bank of Pakistan’s decision to keep the policy rate unchanged, stating that the move has gone against the clear expectations of the country’s business community.

In a joint statement, PIBF President Muhammad Ejaz Tanveer, Secretary General Malik Mahmood, Chief Organizer Muaz Qazi, and Coordinator R&D Tahir Mavia said that despite repeated calls from stakeholders, the government and monetary authorities failed to respond to the demand for a 3.5 percent reduction in the policy rate.

The leadership highlighted that the PIBF policy rate concern reflects the wider frustration of the business community, which believes that the continuation of a tight monetary stance is unjustified under current economic conditions. They noted that inflation has remained around five percent for several consecutive months, making it unreasonable to keep interest rates in double digits.

PIBF warned that maintaining the existing policy rate would further slow down industrial activity, discourage private-sector investment, and weaken efforts toward economic recovery. The forum emphasized that high borrowing costs are directly affecting production, exports, and overall business confidence.

Stressing the urgency of corrective measures, PIBF stated that achieving export targets, ensuring smooth industrial operations, and maintaining stability in the rupee–dollar exchange rate would not be possible without a significant reduction in interest rates.

Under the prevailing circumstances, PIBF urged that the interest rate be reduced to seven percent immediately to support economic growth and restore confidence among investors and traders.

The Pak International Business Forum called upon the government and the State Bank of Pakistan to align monetary policy with ground realities and adopt a growth-oriented approach that supports industry, exports, and sustainable economic activity.