Business community split over SBP’s decision to keep policy rate unchanged

Dawn reported that the State Bank of Pakistan kept its policy rate at 11.5 per cent, and the business community has responded in mixed fashion. Some groups want the central bank to keep easing so that investment and factories can recover, while others back the pause for policy stability.

The Federation of Pakistan Chambers of Commerce and Industry said it was disappointed and called the hold highly contractionary and counterproductive. Its president, Atif Ikram Sheikh, pointed to an 18.1pc rise in the trade deficit for July-August 2026 on a year-on-year basis, arguing the central bank had missed a chance to ease costs. He said the group had sought a single-digit policy rate to bring down the high cost of doing business.

The Overseas Investors Chamber of Commerce and Industry called the decision prudent and balanced, citing stronger reserves and robust remittances, and urged reforms in energy costs, tax refunds and fiscal discipline. The Rawalpindi Chamber of Commerce and Industry backed the hold, pointing to higher global energy and commodity prices linked to the Middle East conflict involving Iran.