FCCI calls for significant cut in policy rate

FAISALABAD: Faisalabad Chamber of Commerce and Industry (FCCI) President Farooq Yousaf Sheikh has called for a significant reduction in the policy rate at the Monetary Policy Committee meeting scheduled for September 14. He said that despite the regional situation, Pakistan’s economy has continued to improve, while the country’s foreign exchange reserves have also increased. In view of these developments, he said, reducing the policy rate would enable domestic industries to access cheaper capital, helping boost production and create new employment opportunities. He said chambers of commerce across the country had been demanding a reduction in the policy rate for the past several years. He noted that although the government had reduced the policy rate from 23 percent to 11. 5 percent, it was still considerably higher than rates in regional countries. As a result, the cost of production of Pakistani export products had increased, making it difficult for them to compete in international markets. Farooq Yousaf Sheikh said the State Bank of Pakistan should bring the policy rate down to 5 percent to accelerate industrial and productive activities in the country and further support economic growth. Copyright Business Recorder, 2026

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