FAISALABAD - Textile exporters have welcomed the State Bank decision to slash discount rate by 150 basis points to 10.5 percent and termed it as realistic support to Pakistani textile exports.
Reduction in interest rate is a step in the right direction but this decision is not enough to put the trade and industry back on track as interest rate is still too high and should be brought down to single digit. These were expressed by Pakistan Textile Exporters Association Chairman Rana Arif Touseef while talking to newsmen here on Saturday.
Appreciating the decision, he termed it a good message delivered by the government; however, brining the discount rate at single digit would prove more beneficial for the promotion of trade and industry in the country. He said that this would help encourage long term investment and coupled with zero loadshedding it would help accelerate economic activities throughout the country.
Considering the current economic slowdown, the SBP made a cut in the discount rate which is highly appreciative; he said and added that this step was need of the hour and an imperative move towards the revival of the economy and the industry. Cut in discount rate has been the longstanding demand of textile exporters to enhance the production, which was badly affected by various reasons, including high discount rate , he added. High mark-up rate and less availability of cheaper credit for the private sector, especially on industry, he said.