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Home / Knowledge / News / Textiles / Industry trade bodies hail new policy moves from apex bank

Industry trade bodies hail new policy moves from apex bank

15
Nov '08

Industry bodies from across all sectors have welcomed the policy measures announced by the apex bank of Pakistan. They have welcomed a move by the State Bank of Pakistan (SBP), which has provided for 100 percent refinancing to banks against export finance provided by these banks to exporters both under Part I & II of the Export Finance Scheme and Long Term Financing Facility (LTFF) for Plant and Machinery.

Along with appreciating the policies, they have suggested a few measures for revival of the economy and remove impediments in free flow of credit to the industries at large. But at the same time they were skeptical about the rise in discount rate which may hurt the industry.

The Governor of the SBP, Dr Shamshad Akhtar has assured the representatives on the above move by saying that this was necessitated because the country's economic indicators have come under stress due to the impact of global commodity price hikes combined with a persistent rise in aggregate demand pressures. Both factors have resulted in rising fiscal and external account deficits during the current year beyond sustainable levels, she said and added that these trends generated inflationary pressures.

The Governor on her part has assured the industry that all efforts will be made to meet the credit needs for the growth of the economy and added by saying that the State Bank will further strengthen its monitoring mechanism to keep tack of liquidity requirements and take appropriate actions to meet the requirements.

Fibre2fashion News Desk - India

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