9 October 2008
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.