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.