Federal Advisor on Textile, Dr Mirza Ikhtiar Baig differed Friday with government's stringent monetary policy having negative impact on economy's growth, job creation and further investment in the country. "I have no option but to differ with the monetary policy despite sitting in the government," he said adding.
"It has plagued the economy badly," he said while addressing an impressive press conference at All Pakistan Textile Mills Association (Aptma) Punjab office. Dr Baig called Gohar Ejaz a dynamic leader and Aptma a vibrant association. He said he has been a part of market access negotiations with the EU government from day one. He added that President Zardari had been involved in lobbying personally on this front and July-end floods in Pakistan expedited the process. The EU offered unilateral market access to Pakistan despite an opposition from Portugal, Greece, Spain and Poland due to a threat to their native textile industry, he added. "We were not asked for any wish list from the EU, therefore, the critics should keep themselves calm," he said.
The advisor informed that some 65 out of 75 items in the market access list from EU are from textile. It is a country-specific treatment by EU, likely to be taken up by WTO on 22nd November, then the EU Parliament and finally its execution from 1st January 2011.
He added that a list of 17 additional items was handed over to the foreign minister before his departure for Brussels. "However, it is simply a request and not a demand to the EU," he clarified.
Dr Baig said President's commitment of no distortion to the free market mechanism would attract new investments in textile. He added that a few EU members are still opposing market access to Pakistan therefore, 'the critics should keep their temper cool'. He observed that there is a sea change in international buyers' behaviour and they are ready to pay for Pakistani products.
Earlier, in his address, Central Chairman Aptma Gohar Ejaz said the ideal interest rate in the country should be six percent. He criticised the banking industry for irrational spread of eight percent on borrowing and lending adding cost of production enormously. This is inelastic, and not consumer demand, causing skyrocketing inflation in the country, he said.