LAHORE/ISLAMABAD: The business community on Monday gave a mixed response to the State Bank of Pakistan’s (SBP) decision to keep the policy rate unchanged at 11.5 per cent, with some backing the move while others called for further cuts to revive investment and industrial activity. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed disappointment over the decision of the SBP’s Monetary Policy Committee (MPC) to maintain the policy rate at 11.5pc, saying trade and industry are in dire need of some breathing space amid the current stagnation-prone economic environment. The apex trade body has termed the decision as highly contractionary and counterproductive — warning that holding the benchmark interest rate at an oppressive level will continue to severely stifle economic activity and undermine industrial revival efforts across the country. “Monetary policy was the only, but potent, tool available to the authorities to provide some relief at the moment, but it remained unutilised,” it added. FPCCI President Atif Ikram Sheikh said the business community had demanded a reduction in the policy rate to single-digit to help bring down the exorbitant cost of
