Saquib Fayyaz Magoon, Senior Vice President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and Chairman of the Businessmen Panel-Progressive (BMPP), has condemned the State Bank of Pakistan’s (SBP) decision to raise the key policy rate by one per cent, calling it “severely damaging” to the business community and the economy.

Magoon stated that this hike contradicts the business community’s expectations, which had sought a reduction or a hold on interest rates to support growth. He highlighted that Pakistani exporters face intense competition, and rising costs from such measures could escalate production and export costs by two to four per cent, harming competitiveness.

He argued that the government should have avoided this decision, especially given existing challenges like inflation and high fuel prices. Magoon suggested postponing the increase until the monetary policy committee could assess the situation.

Emphasising the financial strain on the business community, he urged the government to reconsider the increase and prioritise reducing interest rates to help Pakistan remain competitive in international markets.