High Interest Rates Pose Threat to Pakistan’s Industry, Warns Business Leader

Karachi: Zubair Tufail, President of the United Business Group and a prominent figure in Pakistan’s business community, has urged the State Bank of Pakistan to lower the policy interest rate to a single digit. His call comes ahead of the monetary policy announcement set for July 30.

In a statement on Sunday, Tufail expressed concern over the high interest rates, stating they are placing significant strain on the industrial and business sectors. He warned that without immediate action, many industries could face closure, which would have serious repercussions for the country’s economy and low-income communities.

Tufail highlighted the critical role industries play in an economy, noting that their collapse could lead to increased unemployment, reduced exports, and diminished tax revenues. This, he said, would weaken national economic growth.

He pointed out the disparity between Pakistan’s interest rates and those of neighboring countries. Citing examples, Tufail noted that Vietnam, Cambodia, Indonesia, and India have significantly lower rates, making borrowing more affordable and fostering growth and investment.

Tufail called for decisive action from both the State Bank and the government. He emphasized that reducing the interest rate is crucial not only for economic reasons but also as a strategic measure to protect industries and the livelihood of millions.