In a statement issued on Sunday, Tufail warned that persistently high interest rates are severely hurting the industrial and business sectors in Pakistan, pushing them toward a critical breaking point.
“For several months now, industries have been under immense financial pressure due to the high cost of borrowing,” he said. “If the interest rate is not immediately brought down to a single digit, many industries may face closure in the coming weeks — a development that would have devastating consequences for the economy and for low-income communities.”
Tufail emphasized that industries form the backbone of any economy, and their collapse would trigger a chain reaction, increasing unemployment, reducing exports, shrinking tax revenues, and ultimately weakening national economic growth.
He also highlighted the disparity between Pakistan’s interest rates and those of other regional economies. “Pakistan’s interest rate remains unjustifiably high when compared to neighboring countries,” he noted. “Vietnam’s rate stands at 6.3%, Cambodia at 3%, Indonesia at 6%, and India at 5.5%. In contrast, Pakistan’s industries are struggling with prohibitively expensive borrowing, stalling growth and investment.”
Calling for bold and timely decisions, Tufail urged both the State Bank and the government to recognize the urgency of the situation and take immediate steps to safeguard Pakistan’s economy.
“This is a critical moment,” he added. “Reducing the interest rate is not just an economic necessity — it is a strategic imperative for the survival of industry and the livelihood of millions.”
