Alarming rise in non-performing loans to doom textile industry

Karachi: The trade and industry leaders have shown dismay over alarming rise in NPLs (non performing loans). The Patron In Chief, Korangi Association of Trade and Industry, S M Muneer, Chairman Ehteshamuddin, Vice Chairmen, Hasham A Razzak and Tariq Malik and former Chairman, Mian Zahid Hussain while expressing concern over SBP report which has recorded an abnormal surge by 24% from Rs494 billion to Rs629 billion only in one year.

Muneer said that he already shown his serious apprehensions that this would prove a death knell for the local as well as export oriented industry.

He said that with the continued and frequent loadshedding of electricity and severe shortage of gas; high tariff of electricity, gas and now of water; high interest rates and several other adverse factors are leading to disaster of the industries. Large numbers of export oriented industries, which are contributing 50% of the nation’s exports are rapidly closing down as a result of which our exports are greatly suffering.

Mian Zahid Hussain said he had repeatedly appealed to the government to investigate and find out how many NPLs are involved and take serious and urgent steps on top priority to resolve power shortage; high tariff of utilities and high interest rates otherwise not only many banks would have to close down but also the textile industry employing the largest number of labour would be ruined leading to chaos and disaster.

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