Businesses in Sindh call for 500bps rate cut

KARACHI: Sindh-based chambers of commerce have called for a significant 500 basis point (bps) reduction in the key policy rate at the upcoming Monetary Policy Committee (MPC) meeting on December 16, 2024.

At a meeting held at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday, representatives from various chambers gathered to address pressing industrial concerns and propose solutions.

President of the FPCCI Atif Ikram Sheikh highlighted the urgency of lowering the policy rate, citing the sharp decline in the Consumer Price Index (CPI) to 4.9 per cent in November, while the policy rate remains at 15 per cent. “This premium of 1,010bps is unsustainable for economic growth,” Sheikh said, calling the reduction in the policy rate the FPCCI’s top demand.

He further highlighted the collective proposals made by chamber representatives to resolve Sindh’s critical issues related to infrastructure, law and order, and ease of doing business. “The FPCCI speaks for the entire Sindh -- its cities, towns, industrial estates, and highways. We are advocating development and uplift across the board,” he added.

Sheikh criticised Karachi Mayor Murtaza Wahab’s recent statement, calling it “confused, insensitive and unnecessary”. He said, “As the elected mayor of Pakistan’s largest city and one of the world’s largest metropolises, he should avoid making irresponsible remarks.”

Addressing infrastructure delays, Sheikh expressed concern over the repeated postponements of the Hyderabad-Sukkur Motorway project. “These delays continue to hinder the economic, industrial and commercial growth of two vital cities in Sindh.

What is preventing the governments -- federal or provincial -- from completing this critical project?” he questioned. Sheikh also announced the FPCCI’s plans to support women entrepreneurs by providing exhibition areas within its offices and facilitating their entry into export markets. “Empowering women to export their products can drive grassroots-level economic transformation, led by exports,” he stated.

SM Tanveer, patron-in-chief of the United Business Group (UBG), lauded the proactive role of Sindh’s chambers in promoting industrialisation, economic development and employment generation. He urged the provincial government to address key challenges faced by industrial areas, including inadequate infrastructure, water and gas shortages, poor waste management, and law and order issues. “With these basic amenities, we can establish multi-sectoral, export-oriented and transformative industrial units,” Tanveer asserted.

Saquib Fayyaz Magoon, senior vice president of the FPCCI, raised the long-pending issue of Nawabshah Airport. “The airport is fully constructed but remains non-operational for unexplained reasons. If operationalised, it could attract new businesses, foreign and domestic investments, and industrial ventures, benefiting Nawabshah and its surrounding districts,” he noted.The Sindh business community’s unified demands reflect optimism for economic revival through policy reforms, infrastructure improvements and inclusive initiatives.