Minister Seeks Loan Relief as 25% Rates Bite Industry
Federal Minister for Communications Abdul Aleem Khan has called for measures to reduce industrial production costs, including rescheduling loans of affected businesses, acknowledging that running enterprises at an interest rate of 25 per cent was extremely difficult. He urged the government to direct banks to consider loan relief for industrialists hit by economic difficulties.
Addressing a meeting at the Lahore Chamber of Commerce and Industry on Saturday, Khan said he had already submitted proposals to the prime minister to reduce production costs. He said he would present the business community’s recommendations to the government and continue efforts to resolve business-related issues within his authority.
Why the minister wants loan relief for industry
“It was extremely difficult to run a business by borrowing at an interest rate of 25 per cent,” Khan said, arguing that rescheduling could help affected firms resume operations. His remarks reflect a complaint heard across industry: high borrowing costs leave firms unable to service old loans, let alone invest in new capacity.
The minister briefed business representatives on the National Highway Authority’s finances and infrastructure projects. He said the authority’s annual revenue stood at around Rs66 billion when he assumed responsibility about two and a half years ago, and its target for the current year has been set at Rs160 billion.
He said a substantial portion of NHA revenue was consumed by salaries, road repairs, routine maintenance and rehabilitation of bridges and roads damaged by floods. Expenditure had been capped at around Rs50 billion, while additional revenue from toll taxes and other sources was planned to be channelled into new road projects.
Khan said Rs224 billion had been allocated for ongoing projects under the Public Sector Development Programme, with most funds earmarked for national highways in Balochistan.
New routes and motorway plans
On connectivity, Khan said work was under way on a proposed Lahore-Islamabad route that would reduce the distance between the two cities from about 380 kilometres to 280 kilometres, improving connectivity for Gujranwala, Gujrat, Lala Musa, Kharian and Jhelum.
He said additional toll revenue from the Faisalabad Motorway had helped make the project possible. He announced plans to expand the Sialkot Motorway from four lanes to six, while the Lahore-to-Khyber Motorway was targeted for completion in 2027. The Balochistan Expressway was expected next year and the Peshawar Northern Bypass next month.
Separately, Prime Minister Shehbaz Sharif told a delegation of the Lahore Chamber of Commerce and Industry Founders Group that the government was working with the private sector to promote economic activity and create an environment conducive to business, at a meeting that discussed the economic situation, trade promotion and industry’s challenges.
The delegation apprised the prime minister of the issues faced by the business community and shared its proposals, emphasising mutual cooperation in promoting industry, increasing investment and expanding trade. It also acknowledged the services he rendered to the chamber during his tenure as its president. Federal Ministers for Law and Justice Azam Nazeer Tarar, for Information and Broadcasting Attaullah Tarar and for Petroleum Ali Pervaiz Malik also attended.
The twin messages from Lahore point in the same direction. Industry wants cheaper credit and lower costs, and the government says it is listening. Whether banks agree to reschedule loans for struggling firms will test that message in the weeks ahead, as will the pace of the highway projects the minister promised.
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Frequently asked questions
What loan relief did the minister seek?
Abdul Aleem Khan urged the government to direct banks to consider rescheduling loans for industrialists hit by economic difficulties, saying it was extremely difficult to run a business borrowing at 25 per cent.
What did he say about NHA finances?
He said NHA annual revenue was about Rs66 billion when he took responsibility two and a half years ago, with a Rs160 billion target this year, while spending was capped at about Rs50 billion.
What did the prime minister tell the LCCI delegation?
Shehbaz Sharif told the LCCI Founders Group delegation that the government was working with the private sector to promote economic activity and create an environment conducive to business.
