FAISALABAD, Feb 26: Pakistan Textile Exporters Association (PTEA) has expressed its grave concern over the rising markup rate and termed it harmful for industrial growth of the country.

Talking to the press here on Sunday, PTEA Chairman Rana Arif Tauseef apprehended that the increasing interest rate would not only hinder fresh investment in the industrial sector but the existing units would be closed as well.

He said the industrial credit from banks had become very costly. In some cases, he said the markup rate had reached between 15 to 18 per cent, increasing the production cost.

Similarly, Mr Tauseef said, the rate of export re-finance in the country had gone up to nine per cent while in India re-finance to exporters was being provided at the rate of 5.25 per cent.

He said the basic objective of banks was to facilitate industrialization and investment in the country but they were earning extraordinary profits.

He said huge profits had been earned by banks through exorbitant service charges and markup rate.