The All Pakistan Textile Mills Association (Aptma) has requested President Asif Ali Zardari to intervene to bring interest rates down for the industry, it is learnt. The President was apprised in a meeting on Thursday night in the Presidency that the country has the highest interest rate in the region, resulting in hamstrung economic growth, sources told Business Recorder here on Friday.
The rate in Pakistan is 14 percent, compared to 7.5 percent in Bangladesh, 8 percent in India and China, sources added. They said that Federal Minister for Petroleum and Natural Resources Dr Asim Hussain and Aptma chairman Gohar Ijaz were also present in the meeting. Energy crisis and the bumper cotton production also came under discussion.
The President reportedly assured Aptma of full support to resolve all issues facing the textile industry. When contacted, Gohar confirmed that issue of high interest rates was discussed with the President. He added that as a consequence of high cost of borrowing, Pakistan's exporters are unable to compete in the global market. Textile industry has the potential to achieve $20 billion exports this fiscal year, he said, and urged the government to also ensure that the energy needs of the sector are met, otherwise the potential would not be realised.
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