Business leaders criticise rate decision

According to The Express Tribune, business representatives on Monday objected to the State Bank of Pakistan's decision to leave its policy rate at 11.5%. They argued that expensive credit continues to restrict industrial output, investment and exports in a difficult economic environment.

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh called the move contractionary and counterproductive, saying industry needs room to recover. He said monetary policy was among the few tools authorities currently have to help businesses, and that this opportunity was not taken. Sheikh also repeated the call for cutting the rate to single digits, citing a trade deficit that rose 18.1% year-on-year in July-August 2026. He added that high energy tariffs, rising petroleum prices and financing costs were threatening manufacturers, SMEs and exporters.

KATI President Muhammad Ikram Rajput separately voiced concern and urged the SBP to publish a clear path toward single-digit rates as global conditions improve. He acknowledged risks from Middle East tensions and possible crude price rises, but said domestic producers also face higher costs from electricity, gas and fuel. Rajput added that costly finance is discouraging new projects and technology spending, and hurting SMEs' access to affordable loans.