KARACHI (APP)- State Bank of Pakistan (SBP) is intended to increase export re-finance (ERF) rate equivalent to six months Treasury Bills rates (12.35 percent). This information was shared by the SBP during a meeting of the 7th Private Sector Credit Advisory Council (PSCAC), presided over by Deputy Governor Kamran Shahzad with all directors SBP and presidents of the banks. Federal Advisor on Textile and Chairman Standing Committee on Banking, Credit and Finance of FPCCI Dr. Mirza Ikhtiar Baig also attended the meeting. In his presentation, he expressed concern of business community on regular increase of the ERF rate which now stands at 9pc. He said that ERF is concessional financing to boost the exports against which exporters have to give double the export performance of ERF. He urged the Central Bank to reduce ERF by at least 2 percent or 200 basis points keeping in view the support provided by regional competitors to their textile sector. He also requested SBP to continue its long term financing facility (LTTF) for second hand machinery which has been expired on December 31, 2009. Dr Baig also urged SBP to asks banks to provide moratorium and deferment of loans to their clients in accordance to SBP policy for industrial debt moratorium and rescheduling. He drawn SBPs attention towards banks investment in Treasury Bills and said it amounted to Rs 268b.Dr. Baig also criticized for dismal financing in SME sector by the banks which is the backbone of any country for job creation. He expressed serious reservation of FPCCI towards SBP continued tight Monetary Policy which is effecting our industrial growth. The participants criticized excessive government borrowing from the banks which reduces the availability of the required money for the private sector. Dr. Baig thanked Governor SBP and his team for their supportive role to the private sector and expressed confidence for the better economic performance in the future.