20000112

Govt urged to cut

export re-finance

mark-up rate

RECORDER REPORT

KARACHI: The Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) has urged the ministry of finance to cut the mark-up rate on export re-finance as a follow-up to reduction in general lending rate by two percent.

Bilal Mulla, Chairman Prgmea, South Zone, said in a statement that the cut in mark-up on export refinance will provide some relief to the exporters already faced with tough competition in the export market. He said that though the two percent cut in mark up of export lending would not entirely compensate for the disadvantage suffered by Pakistan's export products against their competitors, it would however, help them to stand up in the market.

The Prgmea zonal chief pointed out that at present the export re-finance is provided on eight percent mark up which was reduced from 13 percent by the previous government. He said that in the past mark-up on export re- finance ranged between three to five percent. Cut in mark up on export lending will go a long way in making Pak products competitive in the export market.

He requested the State Bank Governor to take immediate cognizance of the issue and not to deprive the exporters of the benefits accrued from a general cut in mark up.

Prgmea would raise this issue in the export facilitation committee meeting at the Export Promotion Bureau which is also attended by the representative of the State Bank, he added.