KARACHI, Jan 31: Governor State Bank Dr Ishrat Hussain has expressed the hope that scheduled banks will reduce their lending rates in response to reduction in discount rates being made by the SBP.

The SBP chief stated this in a meeting held on Thursday with a delegation of All Pakistan Textile Mills Association (Aptma) led by its chairman Nadeem Maqbool.

Aptma chairman asked the State Bank Governor to instruct banks to make available funds for BMR and also provide dollar financing liberally. He apprised the SBP chief of difficulties being faced by the textile industry.

He also informed the SBP governor that the textile industry needs funds for BMR, which were not forthcoming from the banks. He hoped that easier credit availability will lend impetus to new investment as well as stimulate the existing industrial base.

Nadeem Maqbool also apprised the governor of the present situation in the textile industry with particular reference to the Sept 11 incident and recession in the world economies.

The SBP governor explained the salient features of the government’s economic policies and apprised the delegation of macro-economic policies of the central bank.

He urged Aptma members to play a positive role in the national interest and prepare themselves for the WTO liberalization.

On the issue of restructuring of loans, the SBP governor informed the delegation that Aptma members should be asked to settle the issue amicably, and if required, they could approach the SBP Conciliation Committee set up for this purpose.

He said there was also Credit Advisory Committee for the SBP where banking issues could be resolved at the grass roots level.