Gohar Ejaz demands further decline in interest rate in Pakistan

LAHORE: Former caretaker Commerce minister, Gohar Ejaz has called for an urgent 4 per cent reduction in the current interest rate, which stands at 17%, deeming it unjust.

Ejaz in his statement stated that lowering interest rate will help recover the economy

Gohar Ejaz, representing APTMA (All Pakistan Textile Mills Association), highlighted that the association currently exports $10 billion worth of goods.

He pointed out that previously 80% of raw materials were imported, but now only 20% comes from abroad.

Ejaz also noted that when GDP growth hits 6%, the current account deficit surges to $20 billion. Reflecting on last year’s exchange rate, he said the currency had stabilized at Rs280. He attributed inflation primarily to currency devaluation.

The former minister expressed optimism that exports could reach $36 billion in a year and added that if electricity is provided at 9 cents per unit, exports could increase by $6 billion.

He said the need for the government to collaborate closely with the export industry to achieve these goals, noting that the textile sector alone can contribute $6 billion in exports.

Criticizing the Independent Power Producers (IPPs), Ejaz questioned why payments are being made to non-operational units. He suggested only paying operational plants, which would bring electricity prices down to 8 cents per unit. He further revealed that five plants are currently receiving Rs. 100 billion annually.