Pakistan aid package fot textile sector :: Gdynia Cotton Association

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Home Page :: News / Events :: Current :: Pakistan government approves aid package fot textile sector

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The Pakistan government has approved an aid package of 12 billion rupees (160 million USD) for the country’s textile industry, which is approximately one-fourth of the 40 billion aid package requested by the industry. The package includes following:

- Allow 3 percent interest rate subsidy on loans to the spinning sector through June 30, 2009.

- Research and development support to textile/apparel exporters for shipments up to 90 days past

June 30, 2008.

- Research and development support to be converted to one-year duty drawback scheme for

companies with in-house cutting and sewing facilities.

- Investment support fund to provide 5 percent interest rate subsidy on purchases of textile machinery

from July 1, 2007 through a five-year period.

- Tax credit facility of 20 percent on investment under the investment support fund.

- Two-year moratorium on principal and interest payment on loans with commercial banks.

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