Cut in policy rate first step towards industrial revival: Gohar

RECORDER REPORT

LAHORE: All Pakistan Textile Mills Association (APTMA) Group Leader Gohar Ejaz has said that 1.5 percent decrease in policy rate to 10.5 percent is the first step towards reviving industry in Pakistan.

It had further to be brought down to 7.5 percent for new industrial activity and stimulus growth to generate employment in economy, he said this while reacting to the 1.5 percent cut in discount rate by the State Bank of Pakistan on Friday.

Gohar said the government had taken a positive step after realising the importance of private sector’s industrial activity which had come to a standstill since the wrong myth of controlling inflation by keeping interest rates high in Pakistan. Resultantly, he said, Pakistan economy had not worked but all the entrepreneurs had moved to the sidelines since four years that led to stagnation in growth and employment.

It may be noted that APTMA Group Leader Gohar Ejaz had been leading from the front so far as industry’s viewpoint on high inflation rate is concerned. It was his unstinting efforts that bore the fruits finally and the industry is likely to witness a single digit markup regime after a period of almost eight years.

APTMA sources have confided to the Business Recorder that Gohar had held two important parleys with the SBP Governor during last three weeks, advocating a substantial cut in the discount rate to trigger investment and growth in the industry in APTMA office and the presidency respectively. Finally, Gohar’s approach prevailed over the cautious approach of the government functionaries and industry has received such a big relief.

It may be noted that the government had already acknowledged the sincere efforts of Gohar Ejaz for industrial growth in Pakistan and he has been conferred with Hilal-e-Imtiaz in March last.