The President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Atif Ikram Sheikh, has voiced the discontent of Pakistan’s business, industry, and trade sectors with the current monetary policy. According to Sheikh, the policy is burdened by a high premium compared to core inflation rates.

In a statement, Sheikh pointed out that inflation in Pakistan has reached a 9-year low, with government statistics indicating a rate of 1.5 percent in February 2025 and 2.4 percent in January. Despite this, the current policy rate stands at 12.0 percent, which is 1050 basis points higher than the core inflation rate.

After thorough discussions across various industries and sectors, the FPCCI is calling for an immediate and substantial reduction of 500 basis points in the policy rate at the upcoming MPC meeting on March 10, 2025. This adjustment is seen as necessary to rationalize the monetary policy and align it with the goals of the Special Investment Facilitation Council (SIFC) and the Prime Minister’s vision for economic and export growth.

Industry projections suggest that core inflation will remain between 1–3 percent in the fourth quarter of FY25, driven by decreasing prices and reduced inflationary pressures.