Concern over monetary policy

President, All Pakistan Textile Association (APTA), Adill Mehmood has expressed concern over the Monetary Policy, announced by the State Bank of Pakistan (SBP). He said that tightening monetary policy by increasing discount rate, cash reserve requirements would further squeeze the lending ability of the banks, eventually hamper in lending finance to industrial units.  As increasing rate of interest would enhance cost of production and hence, the end consumer will sufferer high inflation rate.

The most drastic step is imposing 35% minimum LC margin requirement on imports that will block substantial fund and textile-spinning mills will face severe liquidity problems. Furthermore, he maintained that the cost of production would go up further and APTA fear that SBP policy would adversely hit the industry would make the industry difficult to sustain any more on strong foundation.