Commerce Desk
Lahore: The Pak International Business Forum (PIBF), through its central president Dr Mushtaq Mangat and secretary general Muhammad Ejaz Tanveer, has expressed concern over the State Bank of Pakistan’s decision to raise the policy rate from 11.5 to 12 percent. They warned that higher rates could dampen business activity, industrial production, investment and the services sector.
In a joint statement, they said the increase would raise borrowing costs, push up production expenses, discourage fresh investment and slow industrial expansion. Small and medium-sized enterprises, facing expensive credit and limited access to affordable financing, could be hit hardest. They added that costlier financing would make it harder for manufacturers and traders to meet working capital needs, buy raw materials and invest in modern machinery, with the strain spreading to transport, construction and other services.
While acknowledging that controlling inflation remains important, the leaders said monetary policy should balance price stability with growth, investment and employment. They also called for fiscal discipline, tighter control of government spending, stable energy prices, lower production costs and better supply chains.
The PIBF urged the government and the State Bank to consider the business community’s concerns and adopt a balanced strategy that lowers financing costs for the private sector, strengthens industrial capacity, promotes exports and restores investor confidence.
