President of Multan Chamber of Commerce & Industry (MCCI) Anis Ahmed Sheikh has welcomed the government's decision to provide relief to textile industry for its revival. In his statement issued here on Friday, he said that government has approved mark-up subsidy of three percent to spinning sector for two years, starting from July 1, 2007 to June 30, 2009.
He said that the subsidy amount from January 1, 2008 to December 31, 2008 would be given to the relevant mills during the month of March 2009. He said that the government has announced to give subsidy of next six months in July 2009. The government, he said, has already deposited Rs 1.7 billion to State Bank of Pakistan for the provision of three percent subsidy to the concerned mills.
He said that the government has earmarked Rs four billion for research and development, which would be distributed under the directives of the ministry of textile. He expressed the hope that the subsidy would help the industry to come out of crisis, adding that the government had fulfilled the demands of providing relief to the industry.
Describing the textile industry as vital for country's economy, the MCCI chief said that the ministry would carry on its efforts to help the industry flourish and progress. He said, I think the government was aware of the problems being faced by the industry, adding that it would prepare a comprehensive strategy to promote the industry at domestic as well as at international level. He said that the government's support will have a positive impact on textile industry in the present crisis.