KARACHI - PRGMEA Central Chairman Shehzad Salim has said that EFS is becoming ineffective because difference between EFS rate and key interest rate is now only marginal, therefore there is no incentive for industry to avail EFS.  He said that when interest rates go up, the EFS rate is adjusted upwards accordingly. Now interest rates are gradually coming down but EFS rates are not coming down.

He said that SBP devised a EFS for high performing companies whereby a further incentive of 1-1.5pc is allowed to exporters against their performance growth of  2 to 5 times and above.

He said that there is need to revise EFS regime and made it realistic.

Salim stated that an overwhelming majority of garment exporters were SME’s which were operating through their own capital. He said that annual report of SBP acknowledged the fact that private loans of whole textile sector were only 20.2pc of the total.