LCCI President Welcomes Policy Rate Cut, Calls for Single-Digit Interest Rates

By Dr Ansab Ali | Lahore, Pakistan

LAHORE: President of the Lahore Chamber of Commerce and Industry (LCCI), Faheem ur Rehman Saigol, on Monday welcomed the State Bank of Pakistan’s decision to cut the policy rate by 50 basis points, describing it as a positive step towards reviving economic activity, while urging the authorities to bring interest rates into single digits.

Addressing an Extraordinary General Meeting (EOGM) of the LCCI, Saigol said the cost of doing business in Pakistan has risen to an unsustainable level, placing severe pressure on industry and trade. He stressed that the industrial sector urgently requires immediate and effective relief to remain viable.

Saigol warned that persistently high interest rates, combined with expensive electricity and gas tariffs, are forcing industries to relocate abroad, calling the trend dangerous for the national economy. He thanked Prime Minister Shehbaz Sharif and Chief of Army Staff Field Marshal Asim Munir for their efforts towards economic stabilisation.

The meeting was attended by LCCI Senior Vice President Tanveer Ahmed Sheikh, Vice President Khurram Lodhi, SAARC Chamber Vice President and former LCCI President Mian Anjum Nisar, former President Muhammad Ali Mian, former Senior Vice Presidents Zafar Mahmood Chaudhry and Khalid Usman, former Vice Presidents Haris Ateeq and Shahid Nazir, Executive Committee members and a large number of chamber members.

The LCCI president said inflation has sharply increased costs across all sectors, intensifying challenges for the business community. He called for electricity prices to be aligned with regional benchmarks to enhance the competitiveness of local industry.

Saigol also urged the government to expand the tax base by bringing non-filers into the system through incentives, while providing facilitation to existing taxpayers. He called for a simple, transparent and business-friendly tax regime, the removal of unnecessary withholding taxes, restoration of the Final Tax Regime, and timely payment of duty refunds to exporters.

Referring to Pakistan’s widening trade deficit, he stressed the need to promote exports by providing policy support and operational facilitation to exporters.

Speaking at the meeting, former LCCI president Mian Anjum Nisar thanked members for their participation and reaffirmed the chamber’s commitment to addressing members’ concerns. He said rising business costs have emerged as a serious challenge for industry and trade, calling for policy continuity and practical measures to stimulate economic activity.

During the meeting, all agenda items were discussed in detail and approved by a majority vote. Participants reaffirmed the LCCI’s commitment to safeguarding the interests of the business community and advocating for business-friendly policies.