SCCI welcomes reduction in mark up rate by SBP

Naeem Anwar Qureshi, President, Sialkot Chamber of Commerce and Industry has appreciated the decision of State Bank of Pakistan to reduce markup rate by 1.5% on all loans. He said that the decision would not only generate economic activity but encourage investment in private sector. He said that Sialkot Chamber has been soliciting to slash interest rates to support businesses in prevailing adverse economic conditions and hailed the move by the State Bank at this crucial time. He said that though the decision would help in regaining the trust of local and foreign investors but further steps were needed to be taken by the Government to enhance exports of the country. He said that the cost of doing business had increased manifold due to high inflation, dearness of raw materials and increase in the rates of utilities bills due to which exporters were facing severe competition from their traditional competitors in the international market. He said that markup rate of Export Refinance Scheme was originally 3% which had gradually increased to the present highest rate ever. Export Refinance Scheme was of prime importance and exports of the country could not improve without reducing markup rate on export finance. He emphasized that markup rate under Export Finance Scheme should be brought to single digit i.e. 7 to 8% to support export sector of the country. He said that reduction of markup rate under Export Finance Scheme would not only improve exports but would also help in economic development of Pakistan.

ePaper - Nawaiwaqt