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| Govt to allocate large amount of funds to textile sector | | July 02, 2009 (Pakistan) |  |
 The government has allocated Rs 40 billion as an “Export Investment Support Fund” to prop up exports from across all sectors, especially the value added textile sector. This amount will allocated as a part of the budget for 2009-10.
This fund is expected to be provided as a duty drawback which may be increased and replace the subsidy on R&D provided currently. Cross subsidy on gas may also be withdrawn to help the spinning sector.
Giving out details, the Federal Advisor on Textiles, Mr Baig said that Rs 500 million has been earmarked as interest subsidy to the textile sector, along with Rs 500 million, which will be spent on providing infrastructure support to export oriented companies.
Of the Rs 40 billion allocated for the “Export Investment Support Fund”, nearly 67 percent will spent to boost the value added textile sector and the rest will be assigned to other value added export oriented sectors.
He added by saying that in this budget, excise duty on import and supply of viscose staple fibre has been withdrawn and the government would give priority in supply of gas and electricity to the textile sector to help stabilise their operations.
The budget has also apportioned a huge amount for setting up of textile and garment cities across the country which includes Rs 246 million for Karachi Textile city and Rs 207 million on Faisalabad Garment city.
Rs 25 million would be spent additionally on the Lahore Garment city project as well as Rs 17 million for upgrading Textile Institutes and Rs 15 million for the Export Development Plan, Mr Baig, continued by saying.
He concluded by saying that said there was a proposal to disburse 3-4 percent mark-up on investment against plant and machinery in textile sector, which is similar to the Technology Up-gradation Fund (TUGF) scheme in India.
| | | | Fibre2fashion News Desk - India | |
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