RAWALPINDI, SEPT 14: /DNA/ – The Rawalpindi Chamber of Commerce and Industry (RCCI) has called on the State Bank of Pakistan (SBP) to implement a substantial reduction in the policy rate — by at least 3 percentage points — in the upcoming Monetary Policy Committee (MPC) meeting scheduled for Monday, September 15.

RCCI President Usman Shaukat emphasized that while the central bank has halved the policy rate to 11% since June 2024, further monetary easing is both timely and essential. “With inflation projected to average around 6% in the current fiscal year, there is considerable room for an additional 300 basis point cut,” he stated.

Mr. Shaukat stressed that Pakistan urgently needs a more competitive interest rate environment to stimulate industrial activity, attract investment, and enhance the country’s regional economic standing. “Bringing Pakistan’s interest rates in line with those of neighboring economies is critical to lowering the cost of doing business — especially for small and medium-sized enterprises (SMEs), which remain disproportionately affected by high borrowing costs,” he said.

He also referenced a recent visit by Finance Minister Muhammad Aurangzeb to the Chamber House, during which the Minister hinted at the potential for a policy rate cut later this year, citing easing inflation and improving macroeconomic indicators.

 “The time for decisive action is now. A meaningful rate cut would not only provide urgent relief to businesses, but also restore investor confidence and create a more competitive environment for industry and exports,” Mr. Shaukat added.

The RCCI reiterated its long-standing call for comprehensive monetary and structural reforms aimed at promoting sustainable economic growth, safeguarding jobs, and strengthening Pakistan’s industrial base.