All Pakistan Textile Mills Association (Aptma) Chairman Waqar Monnoo has shown reservation on the success of State Bank of Pakistan (SBP) new scheme of the long-term financing for the export-oriented projects (LTF-EOP).
The scheme is aimed at Small and Medium Enterprises (SMEs) to compete in the international market in the World Trade Organisation (WTO) environment, and in particular after the removal of quota regime in 2005.
Monnoo said though he did not deny the role of the SMEs, it would have been more appropriate if the export-oriented spinning and weaving units, manufacturing value-added yarn and fabrics, were encouraged to upgrade their capacities and facilities under the scheme.
He pointed out that the spinning and weaving sector fetched a large chunk of export earnings, valuing 2.381 billion dollars ie 32 percent of the total textile exports of 7.458 billion dollar in 2002-2003.
He held the view that the export of yarn and fabrics, after meeting the domestic requirements, were well poised to exceed the export target of the current year.
Monnoo urged the State Bank of Pakistan to leave this matter to the borrower and the bank, and facilitate the spinning and weaving mills also to enable them to upgrade their machinery and manufacturing facilities under the LTF-EOP scheme like the SMEs.
The Aptma chief said this on a clarification of the State Bank of Pakistan's Governor that there was no upper limit in the LTF-EOP scheme, but spinning and weaving sectors were barred from the scheme.
He said that in the post-2005 scenario, when the textile quotas would be abolished, it was the large textile exporting units, which were better prepared and equipped to meet the challenges and grab the opportunities for freer trade under the WTO regime in the best interest of the country.