Trade policy: government urged to reduce export refinance to five percent

The trade and industrialists have demanded the government to reduce export refinance to 5 percent in forthcoming Trade Policy 2011-12. Hailing the State Bank of Pakistan's move to reduce 50 basis points from 14 percent to 13.50 percent, they pointed out that industry is facing worst time in its history as many industrial units have been closed down across the country and non-performing loans have reached an alarming level of Rs 500 billions.
They said that besides other crisis such as utilities shortages and imposition of additional taxes and levies by the present government, the industry has become uncompetitive. They urged the Acting Governor State Bank of Pakistan that the reduction of 50 basis points is quite insignificant and it should be brought to single digit.
Former President FPCCI and leader of business community S M Muneer, Chairman, Korangi Association of Trade and Industry (KATI), Syed Johar Ali Qandhari, Former Chairman, Mian Zahid Husain and Vice-Chairmen, Shahid Javed Qureshi and Salimuz Zaman in a statement said that SBP's decision to reduce bank rate by half percent is a right step in a right direction but this decision is not enough to back trade and industry on track as interest is still too high and should be brought in a single digit. The Chairman, Pakistan Tanners Association, Aziz Ahmed and Chairman, Towel Manufacturers Association of Pakistan, Syed Usman Ali hailed the reduction in interest rates.