KARACHI: The leather sector has welcomed the right decision taken by the State Bank of Pakistan (SBP) to reduce 50 basis points in the newly announced monetary policy. Hamid A. Zahur, Chairman PTA (S.Z), Vice Chairman Aamir Majid and former Chairman PTA, Gulzar Firoz have lauded State Bank of Pakistan decision to reduce the policy rate by basic 0.50 point to 9.5 percent.
He said that the cut in interest rate though very marginal and still could have been made higher which along with lower international oil prices had significantly contributed inter alia to higher exports including leather and leather made–ups. The government should have availed the opportunity to raise exports and improve country’s reserves and could overcome current account deficit, he opined.
Hamid has expressed hope that the government would soon review the policy rate again and make it at least 9 percent so that investment in manufacturing may pickup.
He was happy that the leather made-ups’ exports, which have come down over the last couple of years will recover again to its true potential with the improved situation.
He also urged the government to transfer the benefit of lower oil prices by reducing electricity tariff, which will help the industry, particularly the export industry.