Spinners seek help from State Bank of Pakistan

Facing the risk of default by a large number of units, the textile sector has approached the State Bank of Pakistan (SBP), seeking its help to retrieve the sector from financial burden. The All Pakistan Textile Association (APTA) has written a letter to the Governor SBP, Dr Shamshad Akhtar apprising her of the crisis in the textile spinning industry.

Textile sector owes Rs 450 billion in loans to banks, of which it has defaulted on Rs 50 billion and another Rs 100 billion is on the verge of default by the textile units, said Chairman APTA, Adil Mahmood. He pointed out that 3% subsidy given by the Central Bank would only benefit a limited number of spinners as it is only for those units, which have not defaulted so far. Since a large number of units have defaulted so they would be deprived of availing this facility.