LAHORE, April 8: The State Bank of Pakistan has established a credit line of Rs200 million for the first phase of the programme designed by Smeda to upgrade powerlooms sector.

A press announcement by Smeda said on Tuesday over 225,000 powerlooms existed in the country out of which 125,000 were situated in Faisalabad alone. In the first phase of the programme some 8,499 or five per cent looms will be upgraded during the next three years.

The SME Bank will provide loans to the powerlooms only on seven per cent interest rate under the locally manufactured machinery (LMM) scheme of the SBP. The credit facility would be extended to over 450 looms having no history of bank default during the first phase of the programme.

The country’s powerlooms sector produces 2.8 billion square metres of fabric every year out of a total production of 4.4 billion square metres. The share of powerlooms in the total export of fabric is said to be 60 per cent and in export of textile made-ups over 90 per cent.