Lasbela Chamber of Commerce and Industry President Yakoob H Karim on Wednesday called for further reduction in export refinance rate. Welcoming the cut in refinance rate to 6 percent by the State Bank of Pakistan (SBP), he said that Lasbela Chamber appreciated the decision of the SBP Governor, as he quickly responded to the chamber's demand. He expressed the hope that the move would accelerate exports to some extent.
Yakoob further said that it was a step in the right direction and the entire export sector hailed the decision. He said that the decrease in cost of bank borrowing would reflect positively on the country's exports in terms of competitiveness. Above all, the business community would now settle their bank liabilities and get relief, he added.
The decision has come at a time when exports to Europe are facing difficulty owing to declining exchange rate of euro against rupee. However, the reduction of up to 1.5 percent in mark-up rate would help the exporters of leather goods to properly negotiate with the European buyers for the upcoming summer and autumn seasons. Yakoob, however, said that the SBP should bring refinance rate to at least 5.5 percent to strengthen the country's exports. He hoped that bringing the rate to a minimum level would also help the exporters better utilise the GSP Plus scheme.