PTA opposes bank rate hike

The PTA has been pressing the government for a reduction in the bank interest rates on export re-finance. The State Bank of Pakistan have however, raised the rate first from 6% to 7% and soon thereafter from 7% to 7.5% instead of lowering it.
According to the banks own information the commercial banks have stated that their minimum margin/spread does not exceed 1% per annum and exporters can borrow loans for exports at 8.5% per annum in 2010 which will effect exporters adversely say the PTA.
Firoz added that the mark-up rates under Export Refinance Scheme are already on the high side and there is no justification for a further increase. The cost of doing business will increase further and Pakistani made products will be less competitive on the world market he stated.

Printer friendly version

Email this article to a friend