Policy disapproval: Monetary policy criticized

FAISALABAD: Pakistan Yarn Merchants Association’s (PYMA) Chairman Abaidullah Sheikh has criticised the recent hike in the mark-up rate declared by the State Bank of Pakistan (SBP) and said this would push up the cost of goods and slow down the pace of exports. The State Bank recently raised the credit mark up rate to 10%. According to Sheikh, this increase will hamper the industrial upgradation, balancing modernisation and replenishment in the country. It will also negatively affect the business and trade activities, slowing down the economy of the country and amount of exports. He pointed out that the mark-up rate in Pakistan was comparatively higher than regional countries including India, Bangladesh and Sri Lanka. The high rate of mark up will also cause a decline in business turnover.

Published in The Express Tribune, November 20^th, 2013.

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