The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has urged State Bank of Pakistan (SBP) Governor Jameel Ahmed to reduce the policy rate at the Monetary Policy Committee (MPC) meeting scheduled for October 26, 2026, arguing that lower borrowing costs could revive economic activity and ease liquidity constraints facing businesses.
In a statement, PCDMA Chairman Saleem Mukati said the prevailing high interest rate had become a significant hurdle for traders and industrialists, limiting access to capital and putting pressure on business operations.
He called for the policy rate to be brought down to single digits, saying a reduction could encourage investment, support industrial growth and provide fresh momentum to commercial activity.
PCDMA Warns High Interest Rates Are Hurting Businesses
Mukati said businesses in Pakistan were facing serious economic challenges amid continuing uncertainty in global markets. He argued that maintaining high interest rates solely to control inflation would not effectively address the difficulties confronting the business community.
According to the PCDMA chairman, the burden of expensive financing ultimately falls on traders and industrialists, restricting their ability to sustain operations, expand capacity and pursue new investment opportunities.
He urged the central bank to consider the concerns of the business community when determining its monetary policy stance.
Lower Policy Rate Could Support Investment and Employment
The association believes a significant reduction in the policy rate could help reduce financing costs, improve access to working capital and encourage businesses to increase economic activity.
Mukati said lower borrowing costs could support industry and trade while creating opportunities for employment as businesses expand and investment improves.
He also emphasised the importance of monetary policy decisions that support economic stability while addressing the financial pressures facing commercial enterprises.
Business Community Awaits SBP Monetary Policy Decision
The PCDMA chairman expressed hope that the MPC would give due consideration to the concerns of traders and industrialists at its October 26 meeting.
He urged policymakers to consider a substantial interest rate cut as part of efforts to support economic recovery, strengthen business activity and ease financing constraints.
The association’s call comes as businesses weigh borrowing costs against inflation risks and the broader economic outlook. The SBP’s decision will determine whether the policy rate remains unchanged or is adjusted in response to prevailing economic conditions.