APTMA, EXIM Bank discuss soft financing to boost textile exports

The All Pakistan Textile Mills Association (APTMA) and the Export-Import (EXIM) Bank of Pakistan discussed ways to boost textile exports through soft financing for new projects and the balancing, modernization and replacement (BMR) of existing plants.

The discussion took place during a visit to APTMA by Shahbaz H. Syed, President and CEO of EXIM Bank, along with Faiz H. Salim, Regional Business Manager. APTMA was represented by Chairman Asad Shafi, Outgoing Chairman Kamran Arshad, former Chairman Rahim Nasir, Sapphire CEO Shahid Abdullah, Anjum Zafar, Haroon Elahi, Ismail Fayyaz, Ismail Fareed, Mohammad Ali and Secretary General Raza Baqir, along with other senior APTMA members representing the full value-added textile chain.

Syed briefed APTMA members on EXIM Bank's current facilities, export support initiatives and future plans. He said the bank would continue engaging with APTMA and the textile sector to improve awareness, access and use of available financing facilities, and expressed hope that the bank's concessionary interest rates would help resolve financial constraints facing exporters. He said the soft terms of EXIM Bank loans would foster exports through investment in new projects and BMR of existing plants and machinery, and urged APTMA members to take advantage of the discounted interest rates on offer. He assured that all loan applications received from the textile sector would be processed quickly, with decisions expected within the next fortnight.

APTMA Chairman Asad Shafi said the textile and apparel industry is the backbone of Pakistan's economy, contributing more than 60% of the country's exports. He said the sector, being the largest in exports, requires strong institutional support to enhance competitiveness, expand capacity and move into branding and design, ultimately boosting foreign exchange earnings. He appreciated EXIM Bank's engagement with the industry and said closer coordination between APTMA and EXIM Bank would help support export-led growth.

Kamran Arshad, Outgoing Chairman, appreciated the operationalization of EXIM Bank's export financing facilities and its role in supporting export-oriented industry.

Leading textile exporters present at the meeting shared their views on current financing schemes, including working capital and long-term investment financing, and discussed the need for timely and affordable finance to support export-led growth, BMR, technology upgradation and new investment across manufacturing, R&D and design and brand development. They urged the bank to introduce financing for indirect exporters as well, to support modernization across the value chain, noting that textile production is a fully integrated process and that exports cannot grow without upgrading technology and machinery at every level of the chain.

Both sides agreed to continue dialogue on practical measures to improve export financing, facilitate investment and support higher exports.