High Interest Rate a Major Obstacle to Economic Growth, Says Former FPCCI VP Zahid Iqbal Chaudhry

Karachi : Zahid Iqbal Chaudhry, former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has said that the persistently high interest rate remains one of the biggest hurdles to Pakistan’s economic progress and revival of business activities.
Speaking to media representatives in Vehari on Sunday, Zahid Iqbal stated that under the leadership of SM Tanveer, the business community across Pakistan is demanding that the State Bank’s Monetary Policy Committee reduce the policy rate to a single digit, ideally between 5 percent and 6 percent, in its upcoming meeting scheduled for July 30.
He noted that, according to official figures, Pakistan’s inflation rate has dropped to around 4.5 percent, its lowest in recent years. In this context, maintaining such a high interest rate is counterproductive—it increases the cost of production, hurts export competitiveness, and discourages investment, making economic stabilization and growth difficult.
“The current high interest rate has become a serious challenge for the business sector. Bringing it down is a unified demand of the business community, led by SM Tanveer, Patron-in-Chief of United Business Group, and Atif Ikram, President of FPCCI,” Zahid Iqbal emphasized.
He further highlighted that rising production costs, flawed policies, unjustified taxation, excessive powers granted to the FBR, and political uncertainty are key issues that must be addressed urgently.
Appreciating recent engagements between top business leaders—SM Tanveer, Gohar Ejaz, and Atif Ikram—with the country’s decision-makers, Zahid Iqbal expressed hope that these meetings would lead to positive outcomes for the business and industrial sectors.