Businesspeople say any hike in policy rate to hit businesses

Business representatives in Peshawar urged the State Bank to leave its policy rate at 11.5 percent ahead of the monetary policy meeting scheduled for Monday. Business Recorder reported that they warned a rate increase could further weaken commercial and industrial activity and put jobs at risk.

The business community argued that inflation was being driven mainly by supply-side costs rather than excess demand, citing September 2026 inflation of 10.26 percent and a 13.33 percent annual rise in wholesale prices. Sarhad Chamber of Commerce and Industry president Malik Imran Ishaq said costly energy, transport and financing were adding pressure, particularly for small and medium enterprises, and called for better access to credit and lower production costs.