KARACHI : President, Karachi Chamber of Commerce and Industry (KCCI), Abdul Majid Haji Muhammad, in a press statement, commenting on the Export Financing Rate raised to 8.5 percent by State Bank of Pakistan, with a recent increase of 0.5 percent effective from 1st July, termed it discouraging for exporters.
Abdul Majid said that in April, Export Financing rates were already increased to 8 percent, and now in the wake of 13 percent inflation, high tariffs of utilities, manifold taxes, the export financing rates set to 8.5 percent will multiply the cost of manufacturing and doing business.Abdul Majid expressed surprise that the government is well aware that a major chunk of our export has faced a downward trend, firstly, due to negative perception of Pakistan in the eyes of western world especially Europe and America, due to war against terror in the region, secondly, due to post-effects of global recession and financial crisis, decision to increase export financing rate is a disappointing sign.Abdul Majid voiced that manufacturers and exporters are already facing problems due to very high policy interest rate, which is still 12 percent and it is a long withstanding demand of business community to bring it to single digit to enhance exports. Abdul Majid was of the view that the government, to control and curtail inflation rate adopted policy and exercise to increase interest rate, which has failed to depress the inflationary pressure on economy and as outcome many sectors are facing setback in respect of their progress.-PR
Courtesy: Business Recorder
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