ISLAMABAD, July 17: Finance Minister Shaukat Aziz on Wednesday said the government was trying to have a single digit interest rates of the banks in order to promote greater trade and business activities in the country.

He also assured All Pakistan Textile Mills Association (Aptma) of shortly clearing their sales tax refunds to help expand the textile industry.

“We have to look after the interests of both the textile people and the farmers,” the minister added.

Talking to Dawn here after the meeting with the Aptma delegation, Mr Shaukat said while the government would soon be ensuring a single digit interest rate, he had asked the textile people to directly negotiate the issue with the banks. “Banks are free today and you better raise this issue with them,” he added.

He said the Aptma delegation also drew his attention towards the exchange rate, and sought more duty drawbacks. “They urged that the government should intervene to have a stabilized exchange rate and I told them that although the market forces are determining the exchange rate, still we are examining the issue,” he said.

The minister said the government was also trying to help get increased market access for Pakistani textiles in the United States. In this regard, he said, the ministry of finance and the ministry of commerce were extensively cooperating with a view to benefiting the textile people.

Aptma chairman Nadeem Maqbool when contacted told Dawn that he and his colleagues had a very good meeting with the finance minister, who assured them of sympathetically looking into their various demands and problems.

Responding to a question, he said Aptma was to collect huge amount of sales tax refund and the finance minister assured them that he would be taking up the issue with the CBR. “But we have been informed by the finance minister that yesterday a substantial amount of refunds have been released by the CBR,” he said.

He said the issue of depreciating dollar rate was also raised with the minister, who said the government was very much mindful of the situation.

Mr Nadeem said that Aptma had also asked for restoring the previous status of duty structure for the import of used and second-hand machinery. He said there had been closure of a huge number of textile plants in the United States and many people wanted to import them for expanding textiles related activities in the country.

“And the finance minister has promised to look into the issue,” he said, adding the government had withdrawn in the current budget the facility of importing used machinery by paying less duty.

Nadeem said issues relating to cotton production were also discussed in the meeting. He said the minister was told that there was going to be the requirement of 12 million cotton bales next year. “There will be more consumption of cotton in the world next year while its production will be less,” he added.

He said the finance minister was also requested to help get DTRL for adequately promoting the textile industry.