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Pak to implement textile machinery modernization scheme
Feb '12
The Technology Upgradation Fund (TUF) scheme that was recently approved by Pakistan's Ministry of Textile Industry is likely to be made effective from next fiscal, i.e. from July 2012.

As part of TUF scheme, the State Bank of Pakistan would support existing small and large textile units across the country that are investing in enhancement of production capacity and upgradation of textile machinery.

This will, in turn, help the country's textile industry to maximize the benefits from the EU package, recently approved by the WTO, and increase its exports.

Under the scheme, large textile mills can avail a 5 percent discount for technological upgradation of their units, while small-scale units can get a 20 percent discount on bank loan, on investments up to PK Rs. 10 million.

Elaborating on the TUF scheme, Mr. Shehzad Salim, Chairman, Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA), told fibre2fashion, “For large-scale manufacturers, the scheme would be applicable to certain projects that are aimed at modernizing and expanding their units, for which they will get initial stage subsidy from the Government up to a maximum ceiling.”

“The small-scale manufacturers will get a one-time concession on the investments for their modernization plans,” he adds.

Informing about the implementation of TUF scheme, he says, “The scheme and its features have been discussed a lot and it is acceptable and satisfactory for all. It is now approved and hence, textile manufacturers can take advantage of it as soon as it is implemented, which is likely from the next fiscal, i.e. from July 2012.”

Talking about the benefits to the garment sector, he opines, “It will help the small exporters balance and modernize themselves in terms of expansions in sewing, stitching and other areas. Garment makers may take advantage of the scheme for new washing techniques and also for modernization.”

Fibre2fashion News Desk - India

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