Governor State Bank of Pakistan (SBP) has constituted a committee to resolve issues pertaining to textile industry, especially, for implementation of SROs of Textile Policy 2009-14. This was stated by Dr Mirza Ikhtiar Baig, Federal Advisor on Textile, who met SBP Governor Syed Salim Raza to discuss the issues relating to textile, here on Tuesday.
The SBP Governor will head the committee, which will include SBP directors, which will meet Federal Advisor Textile every quarter. Dr Baig said he had discussed the issue with particular focus to improve private sector credit and reduction in the lending rates. He also raised the issues submitted by Aptma, PDMEA, Prgmea and other textile associations.
Regarding 2.5 per cent reduction in mark-up on Export Refinance vide Notification No 3(2)TID/09-P-I dated September 1, 2009, the SBP promised that it was making Rs 2.5 billion half yearly payment which would be made by end of March 2010.
Regarding rebate to value added textile sector vide Notification No 3(1)TID/09-P-I dated September 1, 2009, the amount in question was about Rs 1.7 billion and to be paid half yearly. SBP was waiting for instruction from Ministry of Finance for payment.
Regarding differential mark-up payment to spinning sector vide Notification No 3(3)TID/09-P-I dated September 1, 2009, SBP advised that the cut-off date of payment expired on September 15, 2009 which is needed to be extended for payment of mark-up differential to spinning sector. About relaxation and SBP prudential regulation, Governor SBP informed that SBP had already withdrawn their requirements vide their Circular No 6 dated 7 March, 2009.
Dr Baig also raised the issues of banks not extending credit facilities particularly to textile sector and also not accepting L/Cs established by the finance companies on behalf of JC Penny. Governor SBP advised Deputy Governor Kamran Shahzad to take up those matters with the concerned banks. Those who attended the meeting included Kamran Shahzad Deputy Governor, Ashraf Khan Executive Director Finance, Mansoor Siddiqui Director Export Refinance and SME.
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