ISLAMABAD: The Pakistan Textile Council (PTC) has urged the State Bank of Pakistan (SBP) to ensure adequate and timely flow of credit to the export sector and industry.
In a letter addressed to the SBP Governor, PTC Chairman Fawad Anwar highlighted the severe working capital constraints currently facing exporters and the wider business community.
According to PTC, ongoing geopolitical developments and persistently high inflation have intensified liquidity stress for businesses. Traditionally, this gap has been bridged through commercial bank financing, but domestic banks are increasingly delaying or restricting working capital facilities to exporters and industrial enterprises.
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Chairman Anwar warned that this trend is particularly concerning amid declining export performance and growing financial distress, with many businesses approaching the brink of bankruptcy. He noted that the government’s dominant borrowing position, offering relatively attractive risk-free returns, appears to be crowding out private sector credit.
While PTC acknowledged SBP’s policy stance encouraging banks to support businesses, it stressed that there is a significant disconnect between policy and ground-level implementation.
Given the severity of the situation, PTC has requested immediate and targeted intervention by SBP to ensure that the export sector and industry have uninterrupted access to working capital—essential for sustaining exports, preserving employment, and stabilizing the economy.
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