KARACHI: President of the North Karachi Association of Trade and Industry (NKATI), Faisal Moez Khan, has urged the government and the State Bank of Pakistan (SBP) not to increase interest rates in the upcoming monetary policy, citing the potential economic repercussions from rising tensions in the Gulf region.
According to North Karachi Association of Trade and Industry, Faisal Moez Khan stated that an increase in interest rates would negatively impact business activities, industrial production, and exports. He highlighted the potential effects of escalating tensions in the Gulf on Pakistan's economy, emphasizing the need for a timely assessment of the pressure on energy prices, import costs, industrial output, and national exports. Khan underscored the necessity of effective measures to ensure the continuity of business activities.
Faisal Moez Khan noted that a significant portion of Pakistan's economy is influenced by energy availability, imported fuel prices, and global trade conditions. Prolonged tensions in the Gulf region could lead to fluctuations in international oil prices, freight charges, and supply chains, directly impacting Pakistan. This could result in increased industrial production costs and uncertainty in business planning.
The NKATI president further elaborated that the industrial sector is already grappling with challenges such as high energy costs, rising operating expenses, and intense competition in international markets. Under these circumstances, he suggested that the government consult industrial and trade representatives to assess potential economic risks and concentrate on policies that protect production activities, employment, and exports.
Faisal Moez Khan also emphasized the necessity of advance planning for energy supplies, import requirements, and alternative energy sources in response to the evolving regional situation. He mentioned that efficient energy usage, the promotion of renewable energy, and the provision of necessary facilities to industrial enterprises could help mitigate the impact of external economic shocks.
He highlighted the importance of close coordination between the government and the business community in the current scenario. Maintaining consistency in economic policies, introducing business-friendly measures, and making decisions that address the needs of the industrial sector would help sustain business confidence and create opportunities to enhance export capacity.
Khan concluded by stressing that maintaining a favorable business environment for industries is essential for the national economy. He called for strengthened cooperation between relevant government departments and industrial organizations to resolve issues faced by industrial enterprises, reduce production costs, and promote business activities. He cautioned that the situation in the Gulf region should not be perceived solely as a foreign policy issue, but its potential economic implications must also receive due attention.