KARACHI: Muhammad Ikram Rajput, President of the Korangi Association of Trade and Industry (KATI) has said that the recent cut in rates will improve cash flow, increase production efficiency, and encourage industrialists to invest in modern technology. This move will also provide notable relief to Small and Medium-sized Exporters (SMEs).
Welcoming the decision by banks and financial institutions to reduce the interest rate on the Export Refinance Facility (ERF) for domestic exporters by 3 percent he stated that export-driven economic growth is the cornerstone of sustainable development for the country.
Following the voluntary reduction of 3 percent in the ERF rate under the leadership of the State Bank, bringing the rate down to 4.5 percent, exporters will have ample opportunities to increase their exports, injecting new energy into the industrial sector.
He said that the reduction in interest rates will significantly lower the production costs for Pakistani exporters, allowing them to compete more effectively with rival countries in the region.
This decision will not only boost export orders but also help stabilize foreign exchange reserves and reduce the trade deficit.
Rajput further stated that high interest rates were a major obstacle to industrial growth, causing financial pressure on many export units.
He added that the Korangi Industrial Area plays a vital role in the country’s exports, and industries in textiles, leather, garments, engineering, and other sectors will directly benefit from this decision.
A faster industrial process will not only enhance production processes but also create new employment opportunities, resulting in an overall improvement in economic activity.
President KATI expressed hope that the government would also introduce a long-term and sustainable policy framework for the export sector to provide a stable environment for the business community.
He emphasized that measures such as stabilizing energy prices, timely payment of refunds, and simplifying banking procedures could significantly boost exports.
Copyright Business Recorder, 2026
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