Pakistan Business Leader Criticizes Central Bank’s Interest Rate Decision**

Islamabad: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President Muhammad Aman Pracha expressed his disapproval of the State Bank’s choice to hold steady the benchmark interest rate.

Pracha noted that Pakistan’s lending rate is substantially greater than those of neighboring nations. He argued that the State Bank’s Monetary Policy Committee’s rationale for upholding the 11% rate—flood-related anxieties—is unwarranted and misrepresents the existing financial landscape.

He highlighted the present 3% inflation rate as justification for a rate reduction. The central bank’s move, he said, contradicts the business sector’s anticipations.

The FPCCI official further explained that the elevated borrowing costs pose a significant obstacle to capital investment and manufacturing expansion. He contrasted Prime Minister Shehbaz Sharif’s objective of boosting foreign sales with the central bank’s decision, which he believes exacerbates the challenges faced by manufacturers, investors, and exporters.

Pracha concluded that the prevailing economic conditions necessitate a rate cut. Costly financing, he argued, elevates production expenses and hinders Pakistan’s ability to contend in the international marketplace.