Atif Ikram Sheikh, President
Karachi: Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (), has expressed profound concerns and unequivocally rejected today’s decision by the State Bank of Pakistan’s Monetary Policy Committee to increase the key policy rate by 1%. The country’s economy was on a take-off stage after stabilization phase, he added.
Sheikh reiterated that had already cautioned that continued tightening of monetary policy in the country will deal a crippling blow to struggling industrial and export sectors. Pakistan no longer needs contractionary, regressive monetary or fiscal policies, he added.
Chief pointed out that high-interest-rate environment contradicts government’s stated goals of economic revitalization, export growth, and job creation, rendering Pakistani products uncompetitive in regional and international markets. Sheikh condemned the decision as a harsh setback for business community, stating it will only escalate cost of doing business; choke private-sector credit further; and potentiate pressures of de-industrialization.
Saquib Fayyaz Magoon, Senior Vice President (SVP) , highlighted disproportionate impact on small and medium enterprises (SMEs). Coupled with exorbitant energy tariffs and heavy compliance costs, this monetary tightening will push many manufacturers toward default or closures. It is impossible to achieve Federal Board of Revenue’s ambitious revenue targets when stifling production engines.
Abdul Mohamin Khan, VP & Regional Chairman Sindh , voiced distress of traders and industrialists in Sindh as regional chambers and industrial estates are already reporting severe challenges. Factories operating below capacities will be forced to lay off workers; increase interest rate means stalled expansions and canceled orders, he added.
demands authorities review destructive approach to inflation management and adopt pro-growth monetary framework that facilitates local industry rather than penalizes it. The apex trade body calls for comprehensive growth-oriented macroeconomic framework prioritizing broadening tax-net and reducing energy and borrowing costs for export-oriented and domestic manufacturing industries.