FPCCI Urges Government to Reduce Interest Rates to Single Digits

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed strong opposition to the recent increase in the policy rate by the State Bank of Pakistan, calling on the government to reduce interest rates to single digits.

In a statement issued on Monday, the FPCCI highlighted the adverse effects of high-interest rates on the business community and the overall economy. The central bank raised the policy rate by 0.5 percentage points, which the FPCCI argues will further stifle economic growth and investment.

This demand comes at a time when businesses are already grappling with inflationary pressures and rising operational costs. The FPCCI’s call for a reduction in interest rates aims to stimulate economic activity and provide relief to struggling sectors, particularly small and medium enterprises (SMEs) that are crucial for job creation.

Looking ahead, the FPCCI plans to engage with government officials and the State Bank to discuss potential measures for easing monetary policy. Stakeholders are hopeful that upcoming meetings will address these concerns and lead to a more favorable economic environment.