The Chairman of the Pakistan Tanners Association (PTA), Mr Hamid Arshad Zahur, urged the SBP to reduce the interest rate by at least 500 Basis points at the next monetary policy meeting on December 16, 2024.
Mr. Hamid also appreciated SBP’s efforts to reduce the interest rate during 2024, which now stands at 15%. This has helped ease the industry’s finance costs, particularly in the leather sector.
Pakistan’s utility costs for industries are significantly higher than our regional competitors. In addition, the taxation rates for the export sector are very high. To reduce the financial burden on the leather sector, interest costs must be reduced by at least 500 basis points. This will eventually be reduced to under 10% in the first quarter of 2025.