FAISALABAD: Machinery worth billions of rupees is rusting in sick units in the textile hub of the country.

Suhail Bin Rashid, President of the Faisalabad Chamber of Commerce and Industry, told Dawn that over 50 units including 10 mega ones need Rs24 billion collectively for revival.

He said such units were not demanding write-offs but some breathing space through rescheduling of loans besides some arrangement of working capital to revive them.

“Banks are ready to extend helping hand to owners of these sick units, but the State Bank’s Prudential Regulations, which require banks to show old loans as losses to grant fresh ones, have become a stumbling block. The banks are not ready to help at the cost of their reputation,” he said.

Chenab Textile Chairman Mian Mohammad Latif said: “Billions of rupees invested can go waste owing to the ill-conceived policies of the government. The energy crisis and high mark-up rates have also been creating many problems. We have been seeking government help for revival.”

He said as many as Rs14bn was being fetched by Chenab Group annually by exporting textile products, however, the energy crisis has landed this mega unit in trouble reducing its export volume to about Rs1bn.

He said the mark-up on bank loans was increased to 18 per cent from 6pc. “When the group was flourishing banks were kind, however, when it landed in trouble the bank officials started deduction from the payments being sent by our foreign buyers”.

“I did try to convince the bankers that instead of deducting a huge amount they should get a few per cent so that export cycle is not disrupted, but all in vain.”

The textile exporters constituted a three-member committee to coordinate with the government for revival of sick units.

Opinion

Who bears the cost?

Who bears the cost?

This small window of low inflation should compel a rethink of how the authorities and employers understand the average household’s

Editorial

Internet restrictions
Updated 23 Dec, 2024

Internet restrictions

Notion that Pakistan enjoys unprecedented freedom of expression difficult to reconcile with the reality of restrictions.
Bangladesh reset
23 Dec, 2024

Bangladesh reset

THE vibes were positive during Prime Minister Shehbaz Sharif’s recent meeting with Bangladesh interim leader Dr...
Leaving home
23 Dec, 2024

Leaving home

FROM asylum seekers to economic migrants, the continuing exodus from Pakistan shows mass disillusionment with the...
Military convictions
Updated 22 Dec, 2024

Military convictions

Pakistan’s democracy, still finding its feet, cannot afford such compromises on core democratic values.
Need for talks
22 Dec, 2024

Need for talks

FOR a long time now, the country has been in the grip of relentless political uncertainty, featuring the...
Vulnerable vaccinators
22 Dec, 2024

Vulnerable vaccinators

THE campaign to eradicate polio from Pakistan cannot succeed unless the safety of vaccinators and security personnel...