Pakistan’s central bank revise interest subsidy plan to help textile industry cope with economic crisis

Pakistan’s “Dawn” reported that the Central Bank of Pakistan has revised its plan to provide increased interest subsidies to the country’s spinning industry to help the textile sector cope with the economic crisis. The global economic downturn has led to a significant reduction in external demand and the country’s energy shortage crisis, which has severely damaged Pakistan’s textile industry. According to the revised interest subsidy increase plan of the Central Bank of Pakistan, the loan interest subsidy period for the textile sector has been expanded from 1 year to 2 years, that is, from July 2007 to June 2009, and the corresponding payment time is stipulated according to the time when the loan interest subsidy occurs. At the same time, some spinning companies with overdue loans within the specified period can also receive a 3% interest subsidy if they can solve the repayment default problem after obtaining interest subsidies. This subsidy is first paid by banks or depository financial institutions to enterprises, and then paid by the central bank to banks or depository financial institutions.