Ex-APTMA chief welcomes cut in discount rate

RECORDER REPORT

PESHAWAR: Former, Chairman, All Pakistan Textile Mills Association (APTMA), Mohsin Aziz has welcomed the decision of the State Bank of Pakistan (SBP) for announcing 50bps cut in the discount rate and termed it very beneficial for textile sector of the country and continuous and consequent reduction in two policies is a very well come sign and be hoped that such policies would continue and further reduction in discount rate in the next monetary policies so as to bring the discount rate to approximately 7-8 percent.

In a statement issued here on Sunday, the former chairman, APTMA said that the association was persistently persuading the central bank and senior officials of the government functionaries and have brought it into the notice of President of Asif Ali Zardari as well in the annual dinner of the association.

He said that though the cut is still very nominal as compared to their expectations. However, he said that SBP in its last monitory policy have also cut down the discount rate by 1.5 percent. He termed the decision very important for textile sector and its growth.

He said that according to the estimates of APTMA, the country will witness a bumper cotton crop this year and the textile sector will requires investment to convert this cotton to value added textile and such kind of positive intervention on behalf of the financial mangers of the country will prove beneficial for the sector.