Pakistan textile sector gets rebate in interest rate

The State Bank of Pakistan has decided to slash the interest rate by 100 basis points – from 9.5 per cent to 8.5 per cent. All Pakistan Textile Mills Association Chairman SM Tanveer said that the demand for a 1.5 per cent reduction in the interest rate was not completely met, but even the 1 per cent cut will reduce the cost of doing business by a significant margin. The cut will help ensure availability of cheaper money to the cash-starved private sector besides encouraging potential foreign investors to bring financing to Pakistan. They hope that in the upcoming monetary policy, the interest rate will be lowered further.