Home / Knowledge / News / Textiles / Textile body upset over revision of export refinance rate
Textile body upset over revision of export refinance rate
Jan '11
The State Bank of Pakistan (SBP) has revised the Export Refinance rate and fixed it at 11 percent. Pakistan Textile Exporters Association (PTEA) has expressed its dissatisfaction over the same and stated that, this move of the Central Bank would prove detrimental and would badly hit the textile exports and domestic trading activities, as it would raise the cost of doing business in the country.

While the textile exporters have been continuously pressing the government for bringing down the mark-up rate on export refinance. Overlooking the same the government has raised it consecutively, PTEA said.

PTEA voiced its concern that, if the SBP sticks to the same policy, it would not only prove detrimental for the textile sector but would also badly hit the exporters particularly when the sector is already suffering due to issues like high power rates and gas tariffs.

Further, while the exporters in Pakistan are already overloaded with excessive prices of the inputs, tariffs and duties, factors like constant rise in the prices of petroleum products, Electricity and gas tariff charges have excessively raised the cost of production, thus endangering the subsistence of the sector as well as exports.

PTEA even went to the extent of saying that, the governments of other countries in the region were aiding their exporters by providing them with necessary facilities and incentives, whereas the Pakistani government seems to be trying to strangle its exporters.

As the industrialists are already experiencing financial crunch, such high export refinance rate of 11 percent together with the bank spread, would dampen the up-gradation and replenishment of the production line, PTEA said. It added that, the textile exporters were finding it difficult to exercise a hold on the turnover due to lack of cash inflow, which has lead to a fall in exports, and now as the central bank has set the mark up rate on commercial credit at such high level, this is seen to defeat the attempts of the exporters to raise their export turnover.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

(left to right) Rohit Munjal, Ashok  Shah, Rahul Mehta, Premal Udani, Rajesh Masand and Jayesh  Shah

Textiles | On 28th Jun 2017

CMAI to host 822 exhibitors at 65th National Garment Fair

The Clothing Manufacturers Association of India (CMAI) will host over ...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search