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 rate in the upcoming monetary policy, keeping in view the potential economic repercussions of rising tensions in the Gulf region.
He said that an increase in interest rate would negatively affect business activities, industrial production and exports.
Faisal Moez Khan described the potential impact of escalating tensions in the Gulf on Pakistan’s economy as a matter of serious concern, stressing the need for a timely assessment of the pressure on energy prices, import costs, industrial output and national exports. He emphasised that effective measures must be taken to ensure the continuity of business activities.
Faisal Moez Khan pointed out that a significant portion of Pakistan’s economy is influenced by energy availability, imported fuel prices and global trade conditions.
If tensions in the Gulf region persist, fluctuations in international oil prices, freight charges and supply chains could have a direct impact on Pakistan. This could increase industrial production costs and create uncertainty in business planning.
The NKATI president further stated that the industrial sector was already facing several challenges, including high energy costs, rising operating expenses and intense competition in international markets.
Under these circumstances, the government should consult industrial and trade representatives to assess potential economic risks and focus on policies that protect production activities, employment and exports.
Faisal Moez Khan also highlighted the importance of advance planning regarding energy supplies, import requirements and alternative energy sources in view of the evolving regional situation.
He said that the efficient use of energy, promotion of renewable energy and provision of necessary facilities to industrial enterprises could help mitigate the impact of external economic shocks.
According to Faisal Moez Khan, close coordination between the government and the business community is particularly important under the prevailing circumstances.
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.
He said that maintaining a favourable business environment for industries was essential for the national economy. Relevant government departments and industrial organisations should strengthen cooperation to resolve the problems faced by industrial enterprises, reduce production costs and promote business activities.
He stressed that the situation in the Gulf region should not be viewed solely as a foreign policy issue; its potential economic implications must also receive due attention.
Through timely assessments, effective diplomatic efforts, better energy management and appropriate support for industry and trade, Pakistan can better withstand potential economic pressures arising from regional tensions.
Copyright Business Recorder, 2026