PHMA expresses concern over increase in policy rate

Business Recorder reported that Pakistan Hosiery Manufacturers & Exporters Association North Zone chairman Mian Farrukh Iqbal criticised the State Bank of Pakistan’s 50-basis-point increase in the policy rate to 12 percent. He said higher borrowing costs would add pressure to textile and hosiery exporters already dealing with expensive energy, rising operating expenses and international competition.

Iqbal said Pakistan’s policy rate is above those of Bangladesh at 9.5 percent, Sri Lanka at 8.75 percent and India at 5.5 percent, putting local exporters at a cost disadvantage. He argued that dearer financing could squeeze margins, hinder investment and make it harder to fund raw materials and export orders. He called for affordable financing for exporters and a coordinated policy approach, while urging the central bank to reconsider its stance as economic conditions allow.