KARACHI: The head of a major industrial trade group is urging Pakistan’s central bank to keep interest rates unchanged in its upcoming monetary policy, citing risks from escalating tensions in the Gulf region.
Faisal Moez Khan, president of the North Karachi Association of Trade and Industry, said raising rates would hurt business activity, industrial production and exports. He called the potential economic fallout from Gulf tensions a serious concern and said Pakistan must quickly assess pressure on energy prices, import costs, industrial output and exports.
Khan said Pakistan’s economy is heavily influenced by energy availability, imported fuel prices and global trade conditions. Prolonged Gulf tensions could disrupt international oil prices, freight charges and supply chains, raising production costs and creating uncertainty for businesses, he said.
The industrial sector is already grappling with high energy costs, rising operating expenses and stiff international competition, Khan said. He urged the government to consult industry and trade representatives on economic risks and to pursue policies that protect production, jobs and exports.
Khan also called for advance planning on energy supplies, import needs and alternative energy sources. He said efficient energy use, renewable energy promotion and support for industrial enterprises could help cushion external shocks.
He stressed that close coordination between the government and the business community is critical, along with consistent economic policies and business-friendly measures to sustain confidence and boost export capacity.
Khan said the Gulf situation should not be treated solely as a foreign policy matter, adding that timely assessments, diplomatic efforts, better energy management and support for industry could help Pakistan withstand regional economic pressures.
