FAISALABAD: The Pakistan Yarn Merchants Association (PYMA) has welcomed the 50 basis point cut in mark-up rate by the State Bank of Pakistan.
The PYMA also termed it as realistic and pragmatic. Central Chairman Qaisar Shamas Guccha, Zonal Chairman Muhammad Akram Pasha, Zonal and Vice Chairman Adnan Zahid Butt told the media that the SBP had reduced the mark-up rate from 8.50pc to 8pc for the next two months and overall reduction of two percent since November 2014. They said the SBP decision was realistic as the economy was developing on upward trajectory and the GDP was improving compared to preceding year and is further indicated by downward trend in imports, current account deficit and decline in inflation.
Further the growth in LSM, workers’ remittances and stability in Forex reserves are pointers of steady progress in economy, they said. Another good indicator was that inflation rate in current fiscal curtailed between 4 to 5pc which was expected to be 8pc. Growth of LSM by 2.2pc is expected to improve further 8pc after reduction in mark-up rate, they stated.
This monetary policy measure would be helpful for the industrialist, businessmen and traders as facilitated step for investment and business loans and incentive for larger turnover and bigger exports for textile exporters in particular, they hoped.
