PTEA warns 50bp SBP hike will push up factory loan costs
The Pakistan Textile Exporters Association says dearer bank credit, costly energy and soaring freight leave mills less able to match rivals in India, Vietnam and China.
The State Bank of Pakistan (SBP), the central bank, raised its policy rate by 50 basis points to 12%.
PTEA Chairman Rehan Naseem Bharara says the move will raise working-capital costs and deter fresh investment.
He cites far lower business loan rates in India, Vietnam and China, including Chinese lending near 3%.
Vice Chairman Haris Yousaf says freight costs are up nearly 200% and dearer credit could hit export-led growth.
PTEA wants an export-centred framework that treats the textile chain as one industry, not separate tax silos.