Islamabad, July 27, 2025: Zahid Iqbal Chaudhry, former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has termed Pakistan’s persistently high interest rate as one of the biggest impediments to economic recovery and industrial growth.
Speaking to media representatives in Vehari on Sunday, Chaudhry stressed that the business community, under the leadership of SM Tanveer, is united in its call for the State Bank of Pakistan’s Monetary Policy Committee to reduce the policy rate to single digits—preferably between 5% and 6%—in its upcoming meeting scheduled for July 30.
Citing official statistics, Chaudhry pointed out that Pakistan’s inflation has dropped to approximately 4.5%, the lowest in recent years. In this context, he argued, maintaining a high interest rate is counterproductive. “It raises the cost of production, undermines export competitiveness, deters investment, and ultimately hampers economic stabilization,” he said.
“The current interest rate has become a serious burden on the business sector,” he continued. “Bringing it down is a collective and urgent demand of the entire business community, led by SM Tanveer, Patron-in-Chief of the United Business Group, and FPCCI President Atif Ikram.”
Zahid Iqbal also highlighted several additional challenges facing Pakistan’s economy, including rising production costs, flawed policy decisions, burdensome taxation, unchecked powers of the Federal Board of Revenue (FBR), and ongoing political uncertainty. He called for immediate government action to address these structural issues.
Commending recent consultations between senior business leaders—SM Tanveer, Gohar Ejaz, and Atif Ikram—and key government officials, Chaudhry expressed optimism that these engagements would lead to pro-business reforms and provide much-needed relief to Pakistan’s industrial and commercial sectors.
