Pakistan approves implementation of modernization plan for textile machinery

The Pakistani Ministry of Textiles recently approved the Technical Transformation Fund Program (TUF), which may take effect from the next fiscal year, effective from July 2012.

As part of the plan for the technical reform fund, the Central Bank of Pakistan will support small-scale and large-scale textile units nationwide that increase production capacity and upgrade textile machinery.

According to the technical upgrading fund program, large-scale textile projects can obtain a 5% discount on updating their unit's technology, while small-scale units can receive a 20% discount on bank loans and up to 10 million rupees on investment.

In describing the plan for the technical reform fund, Shahzad, the Pakistani Association of Dress Manufacturers and Exporters (PRGMEA). Salim said: "For large-scale manufacturing units, the plan will be applied to specific projects, the purpose of these projects is to modernize and expand their units. In this way, they can get initial subsidies from the government and reach the maximum limit. Small-scale manufacturing units can achieve one-time concessions on investment in realizing their modernization plans."

Regarding the implementation of the technical reform fund program, Salem said: "The plan and its characteristics have been discussed several times, are acceptable and satisfactory. At present, the plan is approved so that textile manufacturers can use this as quickly as possible. The favorable conditions are that the technical reform fund plan will be implemented from the next fiscal year, that is, from July 2012."

Exploring the interests of the apparel sector, Salem said: “The revamping fund program will also help small exporters balance and modernize themselves, expand sewing, sewing and other fields. Apparel manufacturers can use the revamping fund program for washing equipment. Updated and modernized."