Home / Knowledge / News / Textiles / Govt announces textile rescue package with more in offing
Govt announces textile rescue package with more in offing
10
Nov '08
The textile industry will be heaving a sigh of relief on hearing the announcement of the long and much awaited textile package from the government to rescue an ailing industry with incentives and other subsidies.

The Prime Minister of Pakistan chaired a cabinet meeting and approved a slew of measures which includes R & D support to the textile and clothing industry and a relief in interest rates for loans extended to the spinning sector.

According to the proposal, a subsidy amounting to 3 percent for a period of one year will be provided to the spinning mills, which had taken loans at floating rates for importing spinning machinery. This relief is applicable to outstanding balances on principal amounts for loans taken by the units between July 2003 and July 2007.

This caveat though contains a catch. These loans should not have been availed from the State Bank's Long Term Financing for Export Oriented Project (LTF-EOP) scheme. As per the terms of the scheme claims were to be filed for the second half of 2007 in January to claim subsidy, but a number of claims were not filed due to different reasons.

The second tranche of subsidy claims for the first six months of 2008 needed to be filed before June 30, 2008 as per a State Bank circular though actually they needed to be filed from July 2008 onwards.

To bring an end to this impasse, the federal government has advised the State Bank to overlook the delay of filing claims of the last six months of the previous year as well as extend the dates for filing claims for the period January- June 2008 and reimburse claims of 3 percent interest to all eligible beneficiaries under the package.

The total expenditure on the package is estimated to be Rs 1.2 billion. This amount has been confirmed by the advisor on textiles to the Prime Minster; Mr. Mirza Ikthtiar Baig while speaking to leading exporters who assured that the government is seized on the problems faced by the industry and would announce some more measures.

Other measures taken by the government in the meeting include release of water from the Mangla dam which will result in an enhancement of power generation. Also decided at the meeting was a decision to release Rs 60 billion of outstanding bills to the Independent Power Producers (IPP) to enable them to restart their units and help reduce impact of load shedding.

Fibre2fashion News Desk - India


Must ReadView All

GMAC urges Cambodia to push fabric-forward rule in RCEP

Apparel/Garments | On 17th Oct 2017

GMAC urges Cambodia to push fabric-forward rule in RCEP

Representatives from the Garment Manufacturers Association of...

Alibaba to invest $15 billion in DAMO Academy for research

Textiles | On 17th Oct 2017

Alibaba to invest $15 billion in DAMO Academy for research

Alibaba will invest $15 billion over the next several years in its...

Pressure on  Indian textiles exporters to ease by Q3: ICRA

Textiles | On 17th Oct 2017

Pressure on Indian textiles exporters to ease by Q3: ICRA

Pressures on the profit and debt levels of textiles exporters is...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search