Pakistan Yarn Merchants Association (PYMA) has hailed the 50 basis point cut in markup rate announced by the State Bank of Pakistan and termed it as realistic and pragmatic. PYMA central chairman Qaisar Shamas Guccha, Zonal Chairman Muhammad Akram Pasha, Zonal and Vice Chairman Adnan Zahid Butt while talking to newsmen here on Tuesday have said that SBP has reduced the markup rate from 8.50 percent to eight percent for the next two months and overall reduction of two percent since November 2014.
They said the SBP decision is realistic as the economy is developing on upward direction and GDP is improving as compared to preceding year and is further indicated by downward trend in import, current account deficit and decline in inflation. Further the growth in LSM, workers remittances and stability in forex reserves are pointers of steady progress in economy, they added.
Another good indicator is that inflation rate in current fiscal year has curtailed between four to five percent which was expected to be eight percent.
Growth of LSM by 2.2 percent is expected to improve further eight percent after reduction in markup rate, they stated.
This would be helpful for the industrialists, businessmen and traders as facilitated step for investment and business loans and incentive for larger turnover and bigger exports for textile exporters in particular, they hoped.
The PYMA leaders said that regular and steadier reduction in markup rate over the period is shedding positive effects on industry business and trade as the national economy is gradually pulling out of the stagnancy and is on the recovery path.
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