President Islamabad Chamber of Commerce and Industry (ICCI) Sardar Tahir Mehmood has strongly criticized the State Bank of Pakistan’s decision to keep the policy interest rate steady at 10.50%. He warned that this approach risks undermining the country’s urgent need for industrial revival and export expansion.

In a statement issued here on Tuesday, Sardar Tahir Mehmood highlighted that maintaining high-interest rates continues to choke the flow of affordable finance to the industrial sector, particularly impacting Small and Medium Enterprises (SMEs) and exporters. “Economic sustainability cannot be achieved without robust industrialization and that our industries are battling a daunting challenge as imports soar and exports decline, threatening their very survival,” he said.

He cautioned that if the upcoming monetary policy review does not reduce the interest rate to single digits, the government’s ambitious targets for boosting exports and industrial output in the current fiscal year will remain unattainable. “Persistently high borrowing costs are a heavy burden on the private sector, curtailing investment and eroding Pakistan’s export competitiveness,” he added.

Sardar Tahir Mehmood called on the State Bank to urgently realign its policy with the ground realities. “A timely and decisive reduction in the policy rate is essential to unlock credit for businesses, lower production costs, and restore the global competitiveness of Pakistani products,” he urged.

He concluded by emphasizing that an enabling monetary policy is critical for reviving industrial activity, generating employment, and driving sustainable economic growth. “We appeal to policymakers to act decisively to create a conducive environment for industry and exports, which are the pillars of Pakistan’s economic future.”