At a Senate committee meeting on February 2, 2026, lawmakers asked for urgent measures to support businesses. They asked the SBP to lower interest rates to single digits by June. Recommendations for more support for women entrepreneurs and small businesses were also given.
The meeting of the Senate Commerce Committee took place at Parliament House on Monday, under the chair of Senator Anusha Rahman Ahmad Khan. Federal Minister for Commerce Jam Kamal Khan, the CEO of TDAP, and senior officials from the Ministry of Commerce attended the session.
Lawmakers emphasized that high bank deposit returns of around 18.1% are discouraging people from investing in businesses. They also noted that 95% of Pakistan’s business community does not have access to formal bank financing. It is a major factor in slowing economic growth.
The committee urged the State Bank of Pakistan (SBP) to reduce the policy rate to single digits by June 2026 to revive business activity.
IMF Limits Government Options
Minister Jam Kamal Khan told the committee that the government has limited room to act because of the IMF program. He said the IMF does not allow special subsidies or incentives for one sector only. All industries must be treated the same.
He also shared that the IMF has raised objections to Special Economic Zones (SEZs). According to the IMF, subsidies can only continue if they lead to higher tax collection.
Officials added that Pakistan must focus more on small and medium enterprises (SMEs) and reduce dependence on imported raw materials.
Relief Steps Under Discussion
The committee discussed cutting or removing the infrastructure cess. Members said that this cost increases the burden on businesses.
They also suggested relief in income tax rates to give businesses breathing space.
Special attention was given to women entrepreneurs. The chairperson supported steps to help women attend trade exhibitions. The committee recommended increasing government support from 50% to 80% for airfare and lodging for women attending their first 10 national or international trade expos.
Officials also said the Ministry of Commerce will activate 20 sector-specific export councils to expand exports beyond traditional products like textiles.
