The sudden surge in policy rates to 12.25 per cent by the State Bank of Pakistan may cause a decline in its Pakistan’s value-added textile sector, says Shahzad Azam Khan, Central Chairman, Pakistan Hosiery Manufacturers & Exporters Association (PHMEA). It would also have disastrous effects on the economy, industry and exports, he adds. The enhancement in Export Finance Schemes rates to 5.5 per cent will impact exporters’ efficiency and increase liquidity pressures, he adds.

Already troubled by liquidity crisis and other financial challenges, the domestic industry will be devastated by the sudden increase in policy rates, feels Khan. He has urged Prime Minister Shahbaz Sharif and his economic and financial team to take heed to the demands of the business community and reverse the policy discount and EFS rates. Khan has also urged the new government to stick to the “Charter of Economy” for the country’s future development.