Kamran Arshad, Chairman, All Pakistan Textile Mills Association (APTMA), has urged Pakistan’s Monetary Policy Committee to reduce interest rates by 400 basis points to support the textile sector and boost exports.

Currently at an effective rate of 10.6 per cent, high borrowing costs are hampering the industry’s growth Arshad highlights. Emphasising on the need for immediate action, he notes, while inflation has eased to 6.9 per cent, the interest rate remains high at 17.5 per cent, creating significant challenges for the sector.

Lower interest rates are essential for economic recovery and job creation as the current rates continue to threaten the textile industry’s stability, Arshad argues. Reducing interest rates is crucial for economic revival and expanding employment opportunities,adds.

Earlier this week, Finance Minister Muhammad Aurangzeb indicated that the State Bank of Pakistan (SBP) might consider further interest rate cuts during the upcoming Monetary Policy meeting on November 4. The SBP has already reduced its benchmark rate by 450 basis points across three consecutive meetings, bringing it down from a peak of 22 per cent to 17.5 per cent.

Meanwhile, the government is pursuing a broader economic strategy aimed at increasing its tax share by up to 135 per cent. APTMA’s call for an interest rate reduction underscores the need for policy adjustments to support Pakistan’s textile industry and strengthen its export competitiveness.