The Towel Manufacturers Association of Pakistan (TMA) has urged the government to instruct State Bank of Pakistan (SBP) to lower export refinance mark up rates in line with the textile policy to enable textile industry to survive. In a statement here Tuesday, the Chairman TMA Waqar Alam said that in the presence of high mark up rates, it is difficult for the textile sector to meet the export target.
He reminded that in the first ever five-year export policy, it was announced that the export refinance would be available at 5 percent and its cost of Rs 2.5 billion will be born in the budget. On the contrary, SBP has announced a raise in the mark up, without taking into consideration the continued declining trend in textile exports, he added. Concluding, Alam said that at a time when yarn prices are high and gas and electricity tariffs are increasing, there is no justification for increasing mark up rates for export refinance.-PR