APTMA demands a reduction in interest rates in Pakistan.

According to information, APTMA Chairman Kamran Arshad has recommended the Monetary Policy Committee to lower interest rates by 400 basis points, citing the high interest rate as a hindrance to textile sector growth.

Kamran Arshad stated that the industry’s effective interest rate of 10.6% is unsustainable, and recommended strong efforts to reduce borrowing costs.

Despite the fact that inflation has dropped to 6.9%, interest rates remain at 17.5%, posing substantial problems for the industry, according to the APTMA chairman.

According to Arshad, an immediate drop in interest rates is required for economic restoration and job creation, as existing borrowing prices jeopardize the textile industry’s stability.

He emphasized the importance of lower interest rates for economic recovery and job creation.

Earlier, Finance Minister Muhammad Aurangzeb warned on Wednesday that the State Bank of Pakistan (SBP) may lower interest rates further in November’s Monetary Policy.

“For three consecutive sessions, the SBP has dropped its benchmark interest rate by 450 basis points to 17.5%, down from a record 22 percent. Muhammad Aurangzeb said in an interview with Bloomberg in Washington on the sidelines of the International Monetary Fund meeting that the central bank may lower the policy rate at its next meeting on November 4.

According to Pakistan’s finance minister, the current government is working hard to enhance tax revenue in the economy by up to 135%.