The All Pakistan Textile Mills Association (APTMA) has raised concerns over the State Bank of Pakistan's (SBP) move to increase the Reverse Repo (Ceiling) rate by 50 basis points, describing it as 'a blow to the industry'.
According to a statement, the APTMA zonal chairman Yasin Siddik said the textile sector has invested over US$ 400 million on new technology during the last six months as the central bank gradually eased its monetary policy. The SBP's upward revision of the interest rate would hinder the investment made in the industrial sector and result in expansion of defaulters' list, he added.
The APTMA zonal chairman said the country's textile exports have increased by eight percent as the central bank lowered the interest rate from 13.5 percent to 9.5 percent during the last one year. Mr. Siddik explained that the reduction in mark-up rate also had a positive impact on the non-performing loans (NPLs), which had been rising rapidly since 2008. In view of the same, the APTMA official urged the SBP to revise the decision in the greater interest of the economy.
