KARACHI: Exporters are seeking reduction in refinance rate after a recent cut in the policy rate by 100 basis points, from 8 to 7 per cent.

Talking to Dawn leaders of trade bodies engaged in export business stated that the SBP should announce reduction in export refinance rate immediately.

Pakistan Leather Garments Manufacturers and Exporters Association (Plgmea) Chairman Fawad Ijaz Khan said that exports of leather garments fell by 9.29pc during July-April period of 2014-15 to $309 million from $341m in the same period of last year.

He said last reduction in export refinance rate was made in January 2015 when it was cut by 1.5 percentage points from 7.5pc to 6pc.

Pakistan Bedwear Exporters Association (PBEA) Chairman Shabir Ahmed said that the textile policy announced during Pervez Musharraf regime fixed the export refinance rate at 2.5pc and this attracted huge investment in textile sector.

But thereafter the discount rate started rising and went up to 14pc, leading to fall in private investment.

He said that bedwear exports in 2006 touched record high level of $2.1bn but dipped thereafter to hit $1.6bn last year.

He demanded that export refinance rate should be fixed at three per cent to promote trade and investment in the country.

Published in Dawn, June 2nd, 2015

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