All Pakistan Textile Manufacturers Association (Aptma), NWFP chapter, Chairman Afan Aziz has welcomed the recently announced reduction in refinance rates given to the value-added sector of the textile industry and urged the government and State Bank of Pakistan (SBP) to extend the same facilities to the spinning sector, in particular the manufacturers of value-added yarns, such as combed, lyera, slub and fine count yarns.
In a statement here on Tuesday, he emphasised that there was an ill-founded misconception about the yarn not being a value-added item. On the contrary, he added that the above mentioned yarns value addition was well in excess of over 30 percent of conventional yarns (course carded yarns) and, therefore, it deserved to be treated at par with value-added sector of the textile industry.
He said it was of significance to point out that of the $6 billion that the textile sector invested over the past five years 50 percent was by the spinning sector. This sector earns around $1.5-2 billion in foreign exchange yearly.
Afan Aziz appealed to the Minister for Commerce, Humayun Akhtar Khan, and SBP Governor Dr Shamshad Akhtar to allow the same facility of refinance to the spinning sector combed, lyera, slub, and the count yarns of 40/S plus count and double yarns to encourage further improvement in quality and greater export of these items.
He said these products were already part of the State Bank Scheme of export-oriented products and long-term financing (EOP-LTF) but what was needed was refinance facility at 7-1/2 percent rate of interest for promotion of these items.
He emphasised that by allowing these items in long-term financing scheme the policy makers had accepted them as value-added products and, therefore, they also deserve refinance facility to the same extent as the value-added sector.