Pakistan government approves aid package fot textile sector

The Pakistan government has approved an aid package of 12 billion rupees (160 million USD) for the country’s textile industry, which is approximately one-fourth of the 40 billion aid package requested by the industry. The package includes following:

–  Allow 3 percent interest rate subsidy on loans to the spinning sector  through June 30, 2009.

–  Research and development support to textile/apparel exporters for shipments up to 90 days past  

   June 30, 2008.

–  Research and development support to be converted to one-year duty drawback scheme for

   companies with in-house cutting and  sewing facilities.

–  Investment support fund to provide 5 percent interest rate subsidy on purchases of textile machinery

   from July 1, 2007 through  a five-year period.

–  Tax credit facility of 20 percent on investment under the investment support fund.

–  Two-year moratorium on principal and interest payment on loans with commercial banks.

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