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APBUMA urges Govt to revise hike in policy rate
05
Aug '10
M Anees Khawaja, Chairman of All Pakistan Bedsheets and Upholstery Manufacturers Association (APBUMA) is worried over the rise in interest rates by the State Bank of Pakistan (SBP) and has stated that the textile industry is already under immense pressure owing to incessant dearth of energy.

Khawaja continued that, although industrialists continuously demanded to slice the interest rates to single digit, so as to protect country's injured economy, SBP policymakers ignored the pleas. Instead they further tightened the monetary norms, and hence the decision of hiking the policy rate came to fore. Currently, both trade and industry are undergoing multiple challenges and are in urgent need of certain incentive packages.

The rising interest rate and power tariff will act as an end result to the current inflation, which will lead to rising cost of manufacturing and doing business. All this will eventually push towards multiplication of the prices of consumer products.

This sudden increment will harm the medium and small units dealing in export of textile made ups and home textile goods, which are currently facing huge problems and is completely dependent on loans from banks. Khawaja eventually stated that, the textile sector, per say, is surrounded by dreadful financial troubles.

Currently, government possesses billion of rupees of the textile segment, on accounts of sales tax refund. More over, allegedly SBP has also hauled the payments of Drawback of Local Taxes and Levies Claims, owing to non-allocation of funds.

More over, the increasing cost of doing business, due to extraordinary rise in energy and raw material has minced major portion of the available liquidity. Khawaja condemns the government for being ignorant towards problems of the textile sector, which is the core of the country's economy.

Khawaja has urged the government and SBP officials to re-think the current rise in policy rate to single digit. He also said that, prior to implementing this step; the outcome should be rightfully matched with the economic price, which has to be paid.

Fibre2Fashion News Desk - India

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