The president of the SITE Association of Industry (SAI), Abdul Hadi, strongly criticized the State Bank of Pakistan’s decision to raise the policy rate by 50 basis points, calling it an extremely difficult and unacceptable move for the business community.

In a statement, Abdul Hadi said raising the policy rate to 12 pc would further aggravate the problem, putting pressure on industry at a time when factories are already under severe strain.

He pointed out that Pakistani industries are grappling with high production costs, expensive electricity and gas, and rapid changes in the global economic environment. Most units, he said, are operating far below their installed capacity and are barely surviving.

“At this critical stage, another increase in the policy rate will create fresh difficulties for industrialists,” Hadi said.

He expressed serious concern over the Monetary Policy Committee’s complete disregard for the thatness community’s repeCommittee has completely disregardedte into single digits. This, he said, shows that the real problems of the industrial sector are being ignored.

The SAI chief warned that the 50-basis-point hike would not only make new funding harder to obtain but also increase the interest burden on existing loans, adding financial stress for businesses. He added that the move would further weaken the prospects of industrial growth and discourage fresh investment.

Abdul Hadi urged the government and the State Bank to prioritise industrial concerns and take concrete steps to bring the policy rate down to a single-digit level as soon as possible. Only then, he said, could the industrial sector regain momentum and generate employment opportunities.