Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), expressed dissatisfaction with the monetary policy, stating that it continues to impose a heavy premium over core inflation, negatively impacting businesses, industries, and trade.
In a statement, Sheikh pointed out that inflation in Pakistan has reached a 9-year low, with 1.5% recorded in February 2025 and 2.4% in January, based on government statistics. However, despite this decline, the policy rate remains at 12.0%, reflecting a premium of 1050 basis points over core inflation.
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Following deliberations across various industries and sectors, FPCCI has called for an immediate and substantial rate cut of 500 basis points in the upcoming Monetary Policy Committee (MPC) meeting on March 10, 2025. Sheikh emphasized that such a move would help rationalize monetary policy, bringing it in line with the vision of the Special Investment Facilitation Council (SIFC) and the Prime Minister’s economic growth and export strategy.
Industry projections suggest that core inflation is likely to remain between 1–3% in Q4FY25, driven by declining prices and easing inflationary pressures.
