APTMA demands interest rate slash in Pakistan

All Pakistan Textile Mills Association (APTMA) chairman demanded reduction in interest rate in Pakistan to boost textile exports, ARY News reported on Friday.

As per details, APTMA Chairman Kamran Arshad has urged the Monetary Policy Committee to reduce interest rates by 400 basis points, stating that the high interest rate is a barrier to growth in the textile sector.

Kamran Arshad highlighted that the effective interest rate of 10.6% is unsustainable for the industry, and urged the need for bold measures to lower borrowing costs.

Despite inflation dropping to 6.9%, the interest rate remains at 17.5%, creating significant challenges for the sector, the APTMA chairman noted.

According to Arshad, immediate reduction in interest rates is essential for economic revival and job creation, as the current borrowing costs pose a risk to the textile industry’s stability.

Lower interest rates are crucial for economic recovery and employment opportunities, he added.

Earlier, Finance Minister Muhammad Aurangzeb Wednesday hinted State Bank of Pakistan (SBP) might further slash interest rate in November’s Monetary Policy.

“SBP has cut its benchmark interest rate for three consecutive meetings by 450 basis points to 17.5 per cent from a record 22 per cent. The next meeting on Nov 4 may see the central bank reduce the policy rate, Muhammad Aurangzeb in an interview with Bloomberg in Washington on the sidelines of the International Monetary Fund meeting.

Pakistan’s finance minister said the incumbent government is trying hard to increase shares of taxes in the economy up to 135%.