The Multan Chambers of Commerce and Industry (MCCI) has rejected the textile package, recently approved by the government, describing it as 'disappointing'.
The package of Rs 1.2 billion for textile sector along with relief in interest rate for loans to spinning sector, 100 percent refinancing to banks against export finance and research and development (R&D) support to textile and clothing industry is not sufficient measure for the revival of this industry, MCCI President Muhammad Jalaluddin Roomi said in a statement here on Friday.
He said that working capital is not the only issue for textile sector but structural changes are required in the financial sector. He proposed that the government should not intervene in the price determination mechanism of cotton, and said that any upward revision in cotton prices would affect the competitiveness of the textile industry because cotton prices in international markets have decline steeply due to global financial crisis in international market.
He said that annual requirement of cotton is 16 million bales. He expressed serious concern over the present report released by the State Bank mentioning that banking spread has reached at more than 8.5 percent. He also pointed out that basic interest rates and cost of financing in Pakistan have increased drastically. He said that according to Economic Intelligence Unit, Pakistan has the highest interest rate in the world. High interest rate is hampering the competitiveness of Pakistan industry. The MCCI chief demanded a comprehensive package for the textile sector, which is the backbone of the economy.
Comments
Comments are closed.