The study aims to explore how far interactive teaching can produce desirable learning outcomes in educational institutions in Saudi Arabia with EFL paradigm and no scope of social interlocutions in English language in most of the areas. This is in sharp contrast to ESL paradigm as is observed in Pakistan. It points out possible implications of interactive teaching with the contrastive analysis of EFL and ESL paradigms. Using mixed method research design, a survey from learners and teachers in Pakistan and KSA, observations and interviews, it finds out that most of EFL/ESL learners and teachers realize the importance of interactive teaching in optimizing language learning; however, there are certain administrative, psychological and social factors that discourage its application: too much stress on class discipline, the anxiety faced by the learners on their turn of speaking, and the negative social image of the language specially in the context of Saudi Arabia.