KARACHI, Jan 12: All Pakistan Textile Mills Association (APTMA) on Monday called upon the Habib Bank to liberalize the financing enabling the textile industry to face post-quota world challenges.

An Aptma delegation, led by its chairman, Waqar Mannoo during a meeting with the president of Habib Bank Limited and bank's management, said after the abolition of quota in 2005 the textile industry needed large banks like Habib bank support to face the challenges. He also urged to liberalize project financing.

The president, HBL, Zakir Mehmood told the delegation that the timely intervention of the government, had rescued HBL from huge losses as HBL was incurring some timer ago and now the bank was able to build up a reputable image among the borrowers and depositors.

Zakir Mehmood said that due to lack of expertise HBL could not devise a mechanism for financing the premium rate cotton but he agreed to the proposal of the Chairman, APTMA, to consult other banks to develop understanding of the methodology followed by them.

Monnoo said on the occasion that SBP had allowed banks to discount the BPD-29 settlements and in same vain the banks should allow increased repayment time from three to five years as three years were not sufficient in case of project-based financing.

Zakir Mehmood said that cases would be considered on individual basis and if any borrower managed to prove the viability of the project, additional financing would be made available.-PPI