Islamabad: All Pakistan Textile Mills Association (APTMA) and Export-Import (EXIM) Bank of Pakistan explored ways and means to upsurge textile exports through soft financing by EXIM Bank of Pakistan for new projects and BMR of existing plants.
These views were exchanged during a visit to APTMA by Shahbaz H. Syed, President and CEO, EXIM Bank, along with Faiz H. Salim, Regional Business Manager. APTMA was represented by Asad Shafi, Chairman; Kamran Arshad, Outgoing Chairman; Rahim Nasir, former Chairman; Shahid Abdullah, CEO Sapphire; Anjum Zafar; Haroon Elahi; Ismail Fayyaz; Ismail Fareed; Mohammad Ali; and Raza Baqir, Secretary General, along with other senior APTMA members representing the whole value-added textile chain.
Shahbaz H. Syed briefed APTMA members on EXIM Bank's current facilities, export support initiatives and future plans. He said EXIM Bank would continue to engage with APTMA and the textile sector to improve awareness, access and use of available financing facilities. He hoped that concessionary interest rates on financing being offered by EXIM Bank for promoting exports would resolve financial constraints of exporters. He added that soft terms of EXIM Bank loans would lead to foster exports through investment in new projects and BMR of the existing plants and machinery. He urged APTMA members to avail discounted interest rates on loans being offered by his Bank and assured that all loan applications received from the textile sector would be processed at fast pace and would hopefully decide within the next fortnight.
APTMA Chairman Asad Shafi said that the textile and apparel industry is backbone of Pakistan's economy contributing more than 60% of Pakistan's exports. He said textile being the largest export sector requires strong institutional support to enhance competitiveness, expand capacity and venture into brands and designs ultimately inflating foreign exchange earnings. He appreciated EXIM Bank's engagement with the industry and said closer coordination between APTMA and EXIM Bank would help support export-led growth.
Kamran Arshad, Outgoing Chairman, appreciated the operationalization of EXIM Bank's export financing facilities and its role in supporting export-oriented industry.
Leading textile exporters present in the meeting shared views on current financing schemes, including working capital and long-term investment financing, and discussed the need for timely and affordable finance for export led growth, BMR, technology upgradation and new investment in the textile and apparel sector, both in manufacturing, RandD and design/brand development. They urged the bank to introduce financing for indirect exporters also to support modernisation across the value chain, as textile is fully integrated process and no exports can increase without upgrading technology and machinery at each level of the chain.
Both sides agreed to continue dialogue on practical measures to improve export financing, facilitate investment and support higher exports.