Business leaders slam rate hike decision

LAHORE: Senior business leaders have strongly criticised the State Bank of Pakistan’s decision to raise the policy rate by 100 basis points to 11.50 percent, warning that the move will inflict severe damage on an economy already under significant strain. S M Tanveer, Patron-in-Chief of the United Business Group, cautioned that with government borrowing standing at approximately Rs 60 trillion, the rate increase would generate an additional Rs 600 billion in domestic debt servicing costs. He demanded an immediate reversal of the decision, warning of accelerating de-industrialization across the country. Lahore Chamber of Commerce and Industry President Faheem-ur-Rehman Saigol echoed these concerns, stressing that businesses are simultaneously battling high energy costs, heavy taxation, and supply chain disruptions stemming from regional conflict. He warned that the higher borrowing costs would hurt investment, slow employment generation, and weaken Pakistan’s export competitiveness, calling on the government to adopt a more balanced economic approach. Copyright Business Recorder, 2026

Go to News Site