Overview
- The State Bank of Pakistan’s Monetary Policy Committee left the policy rate at 11.5 percent in its latest decision on Monday, prompting public dismay from major trade bodies.
- Leading chambers including the FPCCI, KCCI and SCCI demanded a 2–3 percentage-point cut to bring the rate into single digits at the next MPC meeting and one chamber called for a fall to about 6 percent within months.
- Business groups argue the high rate, together with elevated energy tariffs, is raising financing and production costs, forcing scaled-back operations and factory closures that hurt exports and jobs.
- Chambers point to easing global energy pressures and some reported falls in inflation as reasons to loosen policy now while commentary notes the bank has already cut rates by a large cumulative amount since mid-2024.
- The dispute frames a core policy trade-off for the SBP between stabilizing inflation and foreign-exchange risks and shifting to pro-growth easing; the next MPC and any change in energy or FX conditions will determine whether pressure for cuts grows stronger.