PESHAWAR: Members of the business community urged the government and the State Bank to bring down the interest rate to single digit for economic growth and prosperity.
According to government statistics, Pakistan’s inflation rate has reached a nine-year low, currently sitting at 2.4% in February 2025 and 2.8% in January 2025 despite that the policy rate remains high at 12%, reflecting a significant 1050 basis points premium above core inflation, the traders said.
Businessmen said prices of oil products maintained in the global market, and importantly, power division, and the government of Pakistan has also recommended bringing down energy prices, which is a clear indication of the drop in the inflation ratio in the country.
Traders stressed concrete steps for economic revival, ease of doing business for promotion of industries and trade, provision of soft loans and reduction in policy rate at the optimal level.
Business community noted high energy prices have increased the cost of doing business and industrial production and that Pakistan’s exporting products are becoming uncompetitive in the global market, stating that running business and industries at the current interest rate is not only difficult, but made impossible.
Fazal Moqeem, President of the Sarhad Chamber of Commerce and Industry told this scribe that the business community has faced difficulties in the prevailing circumstances while business and industry growth is stagnant owing to the government’s unfriendly policies.
He called for a drastic cut in policy rate under the vision of the Special Investment Facilitation Council and ground realities to achieve targets of economic growth and improve country’s exports as per the vision of the Prime Minister of Pakistan.
Moqeem said industry estimates predict core inflation to remain between 1–3% in the fourth quarter of FY25, driven by declining prices and easing inflationary pressures.
The government should adopt business-friendly policies and provide relief to the business community, the SCCI chief asserted.
Copyright Business Recorder, 2025
