SIALKOT, Oct 21: The Sialkot Chamber of Commerce and Industry has demanded a five per cent reduction in export finance rate from the current 9.5 per cent for boosting the country’s foreign sales.

It also asked the government to bring the interest rate to single digit from 13.5 per cent which would help in reducing the cost of production and doing business turning the industry viable and competitive.

Talking to the newsmen here on Thursday, SCCI President Ghulam Mustafa Chaudhary said the commercial banks were providing business loans at 18 to 19 per cent hampering exports as costly financing is rendering Pakistani goods uncompetitive on the world markets.

The SCCI president said that the SMEs were the backbone of the economy and the government must evolve a proactive strategy for the development of the SME sector by early establishment of SME clusters across the country to strengthen the country’s industrial base.

He said Sialkot-based SMEs had been producing only exportable items and enjoyed special status in the international market for their products.

He acknowledged the role of both local and foreign banks in the progress of business and hoped the banks would continue extending support in promotion of exports from Sialkot.