LAHORE – Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former vice president Zahid Iqbal Chaudhry has said that the persistently high interest rate remains one of the major impediments to Pakistan’s economic revival and industrial expansion.
Talking to media representatives here on Sunday, Zahid Iqbal emphasized that under the leadership of SM Tanveer, the business community nationwide is urging the State Bank’s Monetary Policy Committee to bring the policy rate down to single digit in its upcoming meeting scheduled for July 30. He noted that with inflation having dropped to approximately 4.5 percent, its lowest in recent years, maintaining a high interest rate is counterproductive. “It increases the cost of doing business, diminishes export competitiveness, and discourages domestic and foreign investment,” he said. “This makes sustainable growth extremely difficult.”
“The current interest rate has become a serious challenge for industry,” Zahid Iqbal asserted. “Its reduction is a unified demand of the business community, led by SM Tanveer, Patron-in-Chief of the United Business Group, and Atif Ikram, President of FPCCI.” He further pointed out that rising production costs, policy inconsistencies, burdensome taxation and political instability are additional hurdles that must be urgently addressed to restore investor confidence. Appreciating recent interactions between senior business leaders, including SM Tanveer, Gohar Ejaz, and Atif Ikram, and the country’s top decision-makers, Zahid Iqbal expressed hope that these discussions would pave the way for policies that support industrial growth and economic stability.
