All Pakistan Textile Mills Association (APTMA) Chairman S M Tanveer has welcomed a reduction in policy rate by 100 basis points by the State Bank of Pakistan here on Saturday. "It will provide relief to the industry, especially the textile industry which is already facing a high cost of doing business in the region," he added.
He also said textile exports were also falling because of the currency crisis in the European Union and that this is a high time for the government that announced the Export Finance Scheme (TFS) and the Long-Term Finance Facility (LTFF) for the textile industry to encourage fresh investment in the sector. An earlier notification of the investment instruments, like TFS and LTFF, would lead to new openings for investors in the textile sector. He also urged the government to include the spinning industry in two schemes as the liquidity crunch has played havoc with this industry.
"The State Bank of Pakistan has laid the foundation for implementing a growth-oriented economic regime by cutting its key interest rate to a 42-year record low of seven percent. This reduction in the policy rate would promote business activities with reduction in the input cost," he added.