ISLAMABAD -UNS: Former Federal Minister,prominent Businessman Senator Saleem Saifullah Khan has expressed serious concerns over Pakistan’s excessively high interest rates, which have reached double digits in recent years as part of efforts to curb inflation and stabilize the economy. Pakistan’s interest rate, currently at 17%, is one of the highest in the region. In contrast, countries like India, Bangladesh, and Sri Lanka have maintained more moderate rates—India at 6.5%, Bangladesh at 6.75%, and Sri Lanka at 11%. Other countries in the region, such as China (2.75%) and Malaysia (3%), also maintain far lower rates, reflecting their relatively stable inflation and economic management.
Talking to World Tribune in formal chating a Industrialist and Senior politician emphasized the severe impact of Pakistan’s steep interest rates on its industrial sector and business .Ssleem Khan noted that many businesses, particularly those reliant on loans for operations and expansions, are struggling to survive under such financial strain. “With the cost of borrowing becoming prohibitively expensive, numerous companies have been forced to scale back or relocate to others countries with more favorable financial conditions,” he said. This trend, he warned, poses a significant threat to Pakistan’s economic infrastructure, weakening domestic production capabilities and damaging the overall business environment.
Mr. Khan further pointed out that the decline in industrial production has had a direct negative impact on Pakistan’s exports. With companies scaling down or moving operations abroad, there has been a noticeable drop in the production of exportable goods, further exacerbating the trade deficit. “Pakistan’s global competitiveness is diminishing, making it increasingly difficult to maintain our position in international markets. This export shrinkage is depleting foreign exchange reserves and slowing down economic growth,” he explained.
Additionally, Mr. Khan highlighted the rising unemployment rates as a direct consequence of this economic shift. “As industries move abroad or downsize, job losses are inevitable, leading to higher unemployment rates, particularly affecting Pakistan’s large youth population,” he stated. He cautioned that this trend is creating a vicious cycle of economic stagnation, shrinking job opportunities, and growing socio-economic instability.
Saleem Saifullah Khan called for immediate and thoughtful economic interventions to address these pressing challenges. Without urgent action, Pakistan risks further industrial decline, weakened exports, and a worsening unemployment crisis, which could lead to prolonged economic instability.
