News Tags

Related Keywords: boost textile sector, garment companies, global economic slowdown, high cost of finance, interest subvention of three point five, major barrier for growth of textile sector, stiff competition, union textile ministry, working capital loan

The high cost of finance has been a major barrier for growth of the textiles sector, in a bid to counter torpidity in exports due to stiff competition, the Union textile ministry is contemplating interest subvention of 3.5 percent on the working capital loan for garment companies

Rashmi Verma, secretary, Union textiles ministry said that in order to boost the textile sector, they have announced several incentives in the last few months. The major area of concern, however, remains high cost of production because of elevated interest rates on working capital.

Related Keywords: across value chain, APTMA, closure of textile industry, energy constraint, fails to release refund, Federal Board of Revenue, government alters Reduced Rate Regime, high cost of doing business, high cost of finance, impose sales tax, labour wages, on all inputs and utilities, textile industry of Pakistan

Chairman All Pakistan Textile Mills Association (APTMA) S M Tanveer expressing concern over the critical situation the textile industry of Pakistan is going through due to high cost of doing business, energy constraints, high cost of finance and labour wages as against the regional competitors. Moreover, if the government alters the Reduced Rate Regime (RRR), fails to release stuck up refunds and does not ensure liquidity supply from banks to the textile industry immediately, it may end up with 50% closure of the textile industry.