Govt considering a relief for textile sector: Tareen

KARACHI: PM’s Advisor on Finance Shaukat Tareen said that the government was considering to provide a relief to textile sector on their loan repayments to improve cash flows.

He was replying to media questions after chairing a meeting to review the performance of Pak‑Lybia Holding Company Ltd at FTC building here Saturday.

He said that mark up was inflation related and it was still stuburn. It is not in country’s interest to lower mark up rates unless inflation is brougth down, he noted.

“However, the government is looking into the possibility of providing relief to textile sector because they are facing problems of high interest rates and power crisis”, he said.

Tareen noted that strike was not a very constructive way of moving ahead. “We will sit together with the Governor of State Bank of Pakistan (SBP) to work out some relief including comfort in 12 to 18 months in repayments to improve their cash flows while they will continue to pay mark up on their loans, he added.

To another question about the news of a negative economic growth, he said that though industrial sector has recorded a negative growth in the first five six months, the agriculture and services sectors will witness a postive growth due to high prices and strong banking and financial sectors.

“I do not see any decline in GDP growth below the set target, but only time tell”, he observed.

To a question about the inflows, the Advisor said the country will get $ 156 million this month on account of expense of “war on terrort”. But this will a payment uptill April 2008, The rest of the payment is still pending. Uptill now we have not received any payments in connection with war on terror.

He said said that the government receipts have improved due to reverse flow in T‑bills on high mark up, better revenue collection and foreign inflows. This is the reason that the government has retired its overdraft.

To a question regarding his visit Pak‑Lybia Holding Company, he said that DFIs and investment companies were set up for attracting investment from their joint venture countries and play a role in infrastructure and capital market developments.

They had started working as commercial banks and played in stock market and were turned into casinos. This is the reason why I am visiting every DFI to invite their attention towards their actual objectives, he opined.

Tareen said that Pak‑Kuwait Investment Company has invested billions of rupees in stock market. They had wasted good money in the stock market.

We will impose a “ban” on investment by DFIs and investment companies in the stock market. They will be allowed only a limited investment for the development of capital market.

They will do a core business of infrastructure development and capital market development and to create a long term bonds.

They must finance projects of public‑private partnerships of the government. They must bring in investment from partners countries like Libya, Oman, Kuwait, Brunai, Iran into project financing.

To a question, he said that treasury stock Ordinance will be functional soon to allow all the listed companies to buy back their shares and sell them whem their prices are high.