The Pakistan Textile Exporters Association (PTEA) have demanded notching down the banking spread to save the industry and exports as it is impeding the growth of trade activities in the country. Textile package announced in budget is a positive sign but these schemes should be implemented in letter and spirit, said Sheikh Ilyas Mahmood, chairman, and, Adil Tahir, vice chairman of the association, on Friday
In a statement, they said that foreign trade was the backbone of any economy, but highest banking spread in Pakistan was hampering the industrial growth and the government should ensure rationalisation of banking spread based on the current market conditions. High banking spread pushes up the cost of production making their products uncompetitive and hurting exports, they added.
The State Bank of Pakistan must play its role for narrowing down the high interest rate spread which would produce healthy results for economy as it would promote investment, reduce credit cost, bring down production cost leading to better growth of business activities and availability of cheap products to the end consumers.
The PTEA chairman was of the view that regional competitors enjoyed lower and preferential interest rate provided by their respective governments to support their industry but in Pakistan high discount rate was an extra burden on already ailing industry. If the SBP and the finance ministry did not come to its rescue by providing preferential, lower interest rate, textile industry set up after lot of hard work and achievement of many generations was now on the verge of collapse, he added.
