RAWALPINDI — The Rawalpindi Chamber of Commerce and Industry (RCCI) has made a call to the State Bank of Pakistan (SBP) for the adoption of a single-digit policy rate. This initiative aims to enhance economic growth and alleviate business pressures.
Monetary Policy Concerns
On Monday, RCCI President Usman Shaukat commented on the Monetary Policy Committee’s decision to maintain the policy rate at 11.5 percent. He noted that there was an opportunity for easing the rate. A significant concern is the escalating inflation rate, which climbed from 7.3 percent in March to 11.7 percent in May, mainly driven by imported energy costs rather than domestic demand.
Influences from Global Economy
Shaukat highlighted several global economic factors that could help in stabilizing inflation soon. These include the potential truce between the US and Iran, along with a notable 20 percent drop in oil prices from their 2026 peak.
Effect on Business Sector
The RCCI president emphasized that high financing costs have a detrimental impact on small and medium enterprises, manufacturers, and exporters. He urged the central bank to reverse recent tightening measures. Establishing a clear path toward single-digit interest rates is vital to stimulate investment, employment, and exports.
