Textile millers have stressed that the central bank should continue to slash interest rates to at least bring them on a par with regional countries that will give a necessary boost to the domestic industry.
Talking to the media here on Wednesday, APTMA Group Leader Gohar Ejaz termed high interest rates a major hurdle in the way of accelerating industrial growth, saying an easy monetary policy since 2011 had produced positive results.
“After the SBP lowered its policy rate from 13.5% to 9.5% in the last one year, textile exports have increased by 8% this fiscal year,” he said.
The industry is also investing in balancing and modernisation of its operations, estimated at $400 million in the last six months, after a long break of about five years.
However, Ejaz pointed out that the investment in technology was still much below desired levels and Pakistan needed to upgrade its textile industry rapidly to catch up with regional competitors that have invested heavily.
Published in The Express Tribune, April 11th, 2013.
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