FAISALABAD, Jan 26: State Bank Governor Dr Ishrat Hussain said on Saturday that an Islamic bank would be set up soon in the country.

He was speaking at a meeting of the members of Faisalabad Chamber of Commerce and Industry here on Saturday.

He said that branches of the Islamic bank would be set up in various parts of the country for the benefit of industrialists and businessmen. “This gigantic project will be started after completing all procedural and legal formalities,” he said.

He said that a plan was also being prepared for providing soft loans to the owners of small powerlooms factories and the Small and Medium Enterprise Bank had already been directed accordingly.

The government and the State Bank have jointly taken measures and no future government could seize or even touch the foreign currency accounts.

He stressed the need for the export of value-added products because of the competition with 180 international competitors after the abolition of textile quota from year 2004.

He claimed that after joining international coalition against terrorism, Pakistan had so far received US $600 million grant, which would provide a fillip for strengthening the economy.

The European Union had also enhanced textile quota since the start of this month and abolished the tariff for Pakistan only, he said.

The SBP governor said that hectic efforts were being made to enhance the textile quota and abolish tariff from America. Pakistani entrepreneurs should evolve joint ventures with their American counterparts because they have latest technology, designs and marketing facilities.

He said that the SBP had directed all banks in the country to give Rs24 billion loans to the textile sector during year 2001 but Rs19 billions were provided to this sector in the light of their demand. The mark up for export refinance has also been declined by 7 per cent for the convenience of exporters.

The commercial banks sold Rs750 million worth prize bonds during the last six months.

He urged the business community to approach private and small banks for obtaining loans at soft term so that big and financial institutions could be forced for the same.

Earlier, FCCI President Main Naeemur Rahman highlighted in his welcome speech the problems faced by the industrialists, exporters and businessmen engaged in textile sector.

He demanded that government should provide loans to sick industrial units and for the setting up of new ones at low mark up. SBP should also revise part one and part two facilities for the loan-seekers.

26 ARRESTED: Local police teams on Friday night arrested 26 persons for selling prize bond number tickets and gambling on cricket matches from various parts of the city.