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Exports hit by new monetary policy
06 Feb '08
1 min read
The new monetary policy issued by the State Bank of Pakistan might not be very encouraging for certain sectors of the textile industry.
According to the new monetary policy, interest rates have been pulled up by half percent and further that the cash reserve ratio of the banks are to increase from 7 percent to 8 percent. As a consequence, the markup rate is likely to go up affecting debtors who will end up paying more to the banks.
Exporters in Pakistan were anyways criticizing the high markup rate and the increasing cost of production and to add to this situation, the new policy will make it virtually impossible for the needy to take loan from the banks.
Mr Shabir Ahmed, Chairman, Pakistan Bed wear Exporter's Association expressed concern over the issue stating that the industry had been adversely affected from the decision taken by the State Bank. He informed Fibre2fashion that export of bed wear went down by 8 percent during the period July 2007 to Dec 2007 and the policy adopted recently will only worsen the situation.
Further, stringent and inflexible laws are also keeping buyers away from dealing with Pakistan which is, again, affecting exports.
According to the new monetary policy, interest rates have been pulled up by half percent and further that the cash reserve ratio of the banks are to increase from 7 percent to 8 percent. As a consequence, the markup rate is likely to go up affecting debtors who will end up paying more to the banks.
Exporters in Pakistan were anyways criticizing the high markup rate and the increasing cost of production and to add to this situation, the new policy will make it virtually impossible for the needy to take loan from the banks.
Mr Shabir Ahmed, Chairman, Pakistan Bed wear Exporter's Association expressed concern over the issue stating that the industry had been adversely affected from the decision taken by the State Bank. He informed Fibre2fashion that export of bed wear went down by 8 percent during the period July 2007 to Dec 2007 and the policy adopted recently will only worsen the situation.
Further, stringent and inflexible laws are also keeping buyers away from dealing with Pakistan which is, again, affecting exports.
Pakistan Bed wear Exporter's Association
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