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

What is terrorism?
Updated 07 Mar 2021

What is terrorism?

The term ‘terrorism’ is still defined in a vague and contradictory manner.

Editorial

After the vote
Updated 07 Mar 2021

After the vote

PRIME MINISTER Imran Khan may have received the vote of confidence but it does not resolve the major issues that the...
07 Mar 2021

Wasted food

THE number is mind-boggling. According to the UN Environment Programme’s Food Waste Index, over 900 million tonnes...
07 Mar 2021

Covid-19 spike

FEARS about a spike in Covid-19 cases in the country turned real this week as coronavirus infections,...
Vote of confidence
Updated 06 Mar 2021

Vote of confidence

PRIME MINISTER Imran Khan’s decision to take a vote of confidence from parliament today is a bizarre move.
06 Mar 2021

PSL disaster

RAPID escalation in the number of coronavirus cases has led to the postponement of the Pakistan Super League’s...
06 Mar 2021

India ranking

WHILE India has often tooted its own horn as the ‘world’s largest democracy’ — being supported in this...