The Express Tribune•27 Oct 2026, 2:18 AM PKT
•1 min read
Pakistan’s business associations have opposed the State Bank of Pakistan’s 50-basis-point increase in the policy rate to 12%, The Express Tribune reported. Representatives of the Federation of Pakistan Chambers of Commerce and Industry, Korangi Association of Trade and Industry, Karachi Chamber of Commerce and Industry, and SITE Association of Industry said higher financing costs could weigh on production, investment and exports.
The groups pointed to existing pressures including costly energy, taxes, raw materials and limited access to affordable credit. FPCCI President Atif Ikram Sheikh called for the rate to be reduced to single digits, while KATI President Sheikh Umer Rehan said the increase could deter capacity expansion and new projects. KCCI President Talat Mahmood and SITE Association President Abdul Hadi also warned that more expensive borrowing could add to manufacturers’ costs and strain businesses already facing financial pressure.
The business representatives argued that inflation also reflects energy prices, supply constraints and fiscal issues, and urged policymakers to pursue measures beyond monetary tightening. Their response highlights the tension between controlling inflation and sustaining industrial activity.
At a glance
- Business associations criticised the SBP’s 50-basis-point policy rate increase to 12%.
- Industry representatives said higher borrowing costs could restrict production, investment and exports.
- FPCCI called for the policy rate to be brought below 10%.
Originally reported by The Express Tribune
This page is Investify’s own summary. The full report, with all details and context, is on the publisher’s site.
Want the full article here?
Investify summarizes Pakistan Stock Exchange news in its own words and links each story to its original publisher. We always credit thee making financial decisions
More PSX market news
- Govt raises petrol price by Rs1.54, diesel by Rs2.16 per litreMettis• 27 Oct 2026
- SBP buys $863m from interbank market in JulyMettis• 27 Oct 2026
- S.S. Oil Mills Limited: performance and outlookBR• 27 Oct 2026
- IMF consulted before fixing wheat price, says Rana TanveerBR• 27 Oct 2026
- SNGPL may extend term of MDBR• 27 Oct 2026
- FBR sets deadline for textile unit surveillance camera installationBR• 27 Oct 2026
