The Zonal Chairman of Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA), Mohammad Jawed Chinoy has appreciated the Textile Ministry’s initiative by asking State Bank for the early disbursement of Rs 4.825 billion subsidies to the textile sector.
“This is a welcome step by the ministry, which will help exporters overcome the lingering financial crunch. If the SBP complies with this request, it will help reduce the price of locally manufactured products and making them competitive in international market and we hope that SBP will release these funds soon,” he said.
The textile industry has not done any substantial investment on modernisation of machinery due to the impending cash crisis and high interest rates but despite all these obstacles the sector has been making significant gains by increase in exports.
Textile export has witnessed an increase of 22.37 percent during the period from July to December 2010 as compared to the same period last year, “which is a clear sign of our competitiveness in the global market,” he said.