Chairman All Pakistan Textile Mills Association (APTMA) Mohsin Aziz welcomes appointment of Governor State Bank of Pakistan (SBP) Yasin Anwar and expresses the hope that a capable person like him can overcome the issues affecting monetary policy matters.
He said the Governor SBP has already taken a prudent decision of reducing discount rate by 50 and 150 (200) basis points and hence the industry is further pinning hope on him for the revival of pros-industry policy of the central bank.
He said the industry is expecting further reduction in discount rate in next monetary policy, as it is yet the highest in the region, hitting viability of the industry heavily. Also, he said, the bank spread between the borrowing and lending rate is abnormally high, requires immediate review by the SBP to ensure a business environment conducive to further investment and growth.
He said Pakistan's economy is under strong inflationary pressure, leading to a troublesome situation for textile industry in particular, mainstay of Pakistan economy and exclusively export-oriented segment of Pakistan's economy. Resultantly, he said, the number of Non-Performing Loans (NPLs) is on the rise and exposing many business ventures to bank defaults and finally insolvency.
Chairman APTMA said the newly-appointed Governor SBP is very experienced and a capable banker and expressed the hope that he would start interacting with business community soon in order to understand the gravity of situation and the constraints under which the industry is currently confronted with.
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