RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI) has deplored the State Bank of Pakistan’s decision to increase the policy rate by 50 basis points to 12pc, warning that the move could further slow down business and industrial activities, discourage investment and increase the risk of job losses.

RCCI President Nosherwan Khalil Khan said that the business community acknowledges the State Bank’s efforts to safeguard macroeconomic stability. However, he stressed that monetary policy must also support economic growth, industrial expansion and employment generation, particularly when businesses are already facing significant operational and financial challenges.

Nosherwan Khalil Khan observed that the policy rate hike could undermine investor confidence, raise the cost of borrowing and make it more difficult for businesses, particularly small and medium-sized enterprises (SMEs), to access financing for expansion, working capital and technological upgradation.

Published in Dawn, October 27th, 2026