Pakistan Encourages Investment In Textile Machinery And Technology

The Pakistan government has launched a Technology Upgradation Fund Scheme (TUFS) to attract investment in textile machinery and technology.

The plan is part of the 2009-2014 year national textile policy of the Pakistani government. According to the plan, the Pakistani government will provide 5% interest rate subsidy for investment in textile machinery and technology with a total investment of 10 million rupees (117 thousand dollars) and above in Pakistan.

To encourage investment in small and medium-sized enterprises, the federal government of Pakistan will also provide 20% subsidy for investment in textile machinery and technology under 10 million Pakistan rupees.

2009-2010 the subsidy for the project in the fiscal year is 1 billion 600 million rupees in Pakistan ($18 million 800 thousand), and the subsidy to 2014 will be 17 billion rupees ($200 million) in Pakistan.

The investment assistance plan provides a maximum subsidy period of 10 years for existing textile machinery manufacturers, but is limited to the technical investment identified by the financial and Technical Commission of the Ministry of textile industry of Pakistan.

Most of Pakistan's textile machinery and technology have been imported from the EU, Japan and Mainland China. The import amount of textile machinery imported from Pakistan has fallen from 928 million US dollars in fiscal year 2004-2005 to US $212 million in fiscal year 2008-2009.