Commercial importers urge SBP to cut policy rate to revive economy

KARACHI: Pakistan Chemicals & Dyes Merchants Association (PCDMA) Chairman Saleem Mukati has urged State Bank of Pakistan (SBP) Governor Jameel Ahmed to consider reducing the policy rate at the central bank's Monetary Policy Committee (MPC) meeting expected on October 26, 2026, in order to accelerate economic activity and ease the shortage of capital faced by the business community. In a statement, Makati said the current high policy rate had become a serious hurdle for business circles. Bringing the policy rate down to single digits, he said, would have a positive impact on the national economy and give fresh momentum to industry and trade. He noted that the world was facing economic uncertainty, while businesses and industries in Pakistan were also grappling with serious economic difficulties. Under these circumstances, raising interest rates merely in the name of controlling inflation would not prove effective in any way and would turn out to be a failed measure, the burden of which is always borne by traders and industrialists. The PCDMA chairman urged the SBP governor to take the business community's concerns seriously and adopt a policy of lowering interest rates to achieve economic stability. Such a step, he said, would not only promote industry and trade but also generate new employment opportunities through faster economic activity and ease the financial difficulties facing businesses. Mukati said the move would not only promote industry and trade but also create new employment opportunities as economic activity picks up, and would ease the financial difficulties faced by the business community. PCDMA chief expressed hope that the Monetary Policy Committee would listen to the voice of the business community and take a positive decision for economic recovery by giving due consideration to a significant cut in the policy rate.