According to him, a reduction of 150 basis points in rates to produce export surplus has failed to push credit off-take, which means the interest rate is still on the higher side. - File photo

LAHORE: All-Pakistan Textile Mills Association (Aptma) chairman Mohsin Aziz has said that massive decline in textile exports in October, both in value and quantity, is alarming and this trend is likely to continue in future unless energy and interest rate issues for the textile industry are addressed.

Citing the IMF view of Pakistan’s economy, he said that it has endorsed the Aptma concerns regarding sluggish economic trends, particularly rising trade deficit amidst dwindling exports.

According to him, textile exports though had increased in value during the first four months of the current fiscal year, all textile exports declined in quantity terms in October due to gas supply gaps as industry has been denied gas supply for 120 days during 2011.

Further, he said, high interest rate was restricting industry’s expansion. According to him, a reduction of 150 basis points in rates to produce export surplus has failed to push credit off-take, which means the interest rate is still on the higher side and both commercial and industrial borrowers are reluctant on further financing.

He said the SBP should reduce the discount rate by 250 basis points in the upcoming monetary policy on Nov 30 to ensure single digit mark-up in the country.