RAWALPINDI, DEC 16 /DNA/ – The Rawalpindi Chamber of Commerce and Industry (RCCI) has termed the State Bank of Pakistan’s (SBP) recent policy rate cut as overdue but insufficient, stating that the reduction falls short of what is required to meaningfully revive economic activity.
President RCCI, Usman Shaukat, said that while the cut is a welcome step, the business community was expecting a substantial reduction bringing the policy rate into single digits (9% or below). He noted that the current cut is marginal and ineffective in boosting local production, exports, and overall industrial growth.
Usman Shaukat stressed that Pakistan’s economy urgently needs a more competitive and growth-oriented rate regime to revive industrial activity, attract domestic and foreign investment, and enhance regional competitiveness. He recalled that in the previous Monetary Policy Committee meeting, concerns were raised about possible inflationary pressures due to floods, which ultimately did not materialize. “Given this, there was sufficient room for a deeper rate cut in the latest policy decision,” he added.
The RCCI President further stated that the finance minister had announced during his address at RCCI on 14 August that rates should be reduced, and while that commitment has now been partially fulfilled, the reduction remains too little to make a real difference for businesses struggling with high cost of capital.
He expressed hope that in the upcoming monetary policy meeting, the SBP will announce a further reduction of at least 200 basis points or more, bringing the policy rate closer to single digits. Such a move, he emphasized, is critical for supporting industrial revival, export-led growth, and sustainable economic recovery.
