The Federal Government of Pakistan has made a budgetary allocation of Rs 10 billion for fiscal 2010-11 for the 'Export Investment Support Fund' (EISF). This fund had been allocated Rs 40 billion in the 2009-10 fiscal, but has been scaled down in 2010-11 due to financial constraints. The fund is used to provide mark-up rate on export refinancing and rebate on fabric, home textiles and clothing. This was revealed in an exclusive interview to fibre2fashion by Mr Mirza Ikhtiar Baig, Advisor on Textiles to the Prime Minister.
He said, “Due to financial constraint this year Rs. 10 billion has been allocated for EISF which is less than the previous year's allocation of Rs. 40 billion. The amount will be spent on incentives allowed in the five-year National Textile Policy for value-added textile industry to boost our exports which includes Technology Up-gradation Fund (TUGF), reimbursement of 2.5% differential mark-ups on export refinance loan, rebate at the rate of 1% on fabric, 2% on home textile and 3% on garments exports”.
He added by saying, “The exporter will be entitled to a 1% extra rebate if there is more than 15% increase in export as compared to previous year. State Bank of Pakistan (SBP) is also allowing concessional financing (LTFF) on import of value added new plant and machinery as this facility on import of second hand machinery has expired today. However L/Cs opened before 30th June 2010 will be entitled for LTFF”.
“In addition, government is also contributing expenses towards salary and rental on opening of export marketing offices abroad. TDAP is sponsoring renowned international textile exhibitions like Texworld USA from 13th - 15th July 2010 in New York and 35th Federal Trade Fair Moscow from 21st – 24th Sept. 2010 in Russia. I will be leading a delegation of the leading textile manufacturers and exporters and would meet international buying offices in USA”, he concluded by saying.
Fibre2fashion News Desk - India