LAHORE: Former caretaker Commerce minister, Gohar Ejaz has called for an urgent 4 per cent reduction in the current interest rate, which stands at 17%, deeming it unjust.
Ejaz stated that lowering interest rate will help recover the economy
Gohar Ejaz, representing APTMA (All Pakistan Textile Mills Association), highlighted that the association currently exports $10 billion worth of goods.
He pointed out that previously 80% of raw materials were imported, but now only 20% comes from abroad.
Ejaz also noted that when GDP growth hits 6%, the current account deficit surges to $20 billion. Reflecting on last year’s exchange rate, he said the currency had stabilized at Rs280. He attributed inflation primarily to currency devaluation.
The former minister expressed optimism that exports could reach $36 billion in a year and added that if electricity is provided at 9 cents per unit, exports could increase by $6 billion.
He said the need for the government to collaborate closely with the export industry to achieve these goals, noting that the textile sector alone can contribute $6 billion in exports.
Criticizing the Independent Power Producers (IPPs), Ejaz questioned why payments are being made to non-operational units. He suggested only paying operational plants, which would bring electricity prices down to 8 cents per unit. He further revealed that five plants are currently receiving Rs. 100 billion annually.
