KARACHI, Dec 5: Textile commissioner Sheikh Idrees Ahmed has said the government has decided to offer LMM scheme incentives to foreign manufacturers willing to produce textile machinery under a joint venture in textile cities.

He was speaking at a seminar on “Textile finishing machinery”, organized by a leading manufacturers of textile finishing machinery — Muzzi, Italy here on Thursday evening.

He said that if a foreign company could start assembly of textile machines in Pakistan under a joint venture with 20 per cent local component, its buyer could get rupee loan at four per cent per annum under the concessional loan for locally made machines (LMM).

The textile commissioner was of the opinion that the local assembly of these machines would reduce the prices and encourage local textile mills to purchase them.

He said the decision had been made and a formal statutory regulatory order (SRO) will be issued soon in this regard. Currently, the State Bank of Pakistan is allowing bank loans under LMM at a rate of seven per cent. This will be reduced to four per cent under the new scheme.

Sheikh Idrees said that the joint venture companies had to begin deletion programme at 20 per cent and would take it to 50 per cent in four to five years.

He said the government would also provide other incentive to foreign companies in textile cities.

Director, Muzzi Costruzioni Meccaniche of Italy, Pilgaard Lassi, said that his company was willing to produce some of its textile finishing machines in Pakistan under a joint

venture.

He said that local manufacturing of Italian textile machines would help in reducing the cost of these machines. He said that Muzzi is famous in the US, Germany, the UK and other European countries.

“Initially we want to produce dry finishing machine called “Stenter” in Pakistan under a joint venture,” he added.—APP