Lasbela Chamber of Commerce and Industry hails cut in export refinance rate

Karachi, February 04, 2015 (PPI-OT): The President Lasbela Chamber of Commerce and Industry (LCCI) Yakoob H Karim has welcomed the cut in the export refinance rate to 6 per cent from 7.5% by the State Bank of Pakistan. He said that LCCI appreciates the kind gesture of Governor SBP as he quickly responded to the demand of LCCI in this regard and hoped that this move would accelerate exports to some level.

Yakoob said that it was a step in the right direction and the entire export sector has hailed this decision. LCCI Chief said that the decrease in cost of bank borrowing would reflect positively on country’s exports in term of competitiveness. Above all, the business community would now settle their bank liabilities and get the relief.

The decision has come at a time when exports to Europe were facing difficulty owing to declining exchange rate of the euro against Pakistani rupee. However, reduction of up to 1.5pc in mark-up rate would help exporters of leather goods to properly negotiate with European buyers for the upcoming summer and autumn season, particularly when they were already demanding reduction in prices.

He however said that he had demanded o the SBP to reduce refinance rate to at least 5.5 per cent and a further reduction would be needed to draw real benefit of the scheme for enhancing exports. In support of his demand. He said there should be further cut in export refinance rate which is presently 29pc less than the discount rate. He further hoped that export finance rate to the minimum level would also help exporter to utilise GSP Plus scheme offered by European Union.

For more information, contact:
Muhammad Farhan
Public Relations Officer
Lasbela Chamber of Commerce and Industry (LCCI)
Ground Floor,
Lieda Office Building,
Hub Distt., Lasbela
Tel: +92-85-3303410, +92-85-3304461
Fax: +92-85-3302431
Cell: +92-85-300-2023448

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