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ISLAMABAD, Aug 08 (APP): Special Assistant to the Prime Minister (SAPM) Haroon Akhtar Khan on Friday emphasized that every possible effort would be made to facilitate the manufacturing sector, as its revival is essential for promoting economic activity, creating jobs, and increasing exports.
Chairing a meeting of the sub-committees on the restoration of sick industrial units and ease of access to credit under Pakistan’s Industrial Policy, Haroon said export-based growth is a cornerstone of Pakistan’s economic strategy, said a news release.
The meeting was attended by representatives of the Pakistan Banking Association, Ministry of Finance, Pakistan Business Council, Chambers of Commerce, and the State Bank of Pakistan.
The SAPM Haroon emphasized that any industry failing to repay loans, closed for more than 12 months, inactive, or operating at less than 30% of its capacity, is considered a sick unit.
The committee proposed that the SBP should issue an easy framework for the revival of sick industrial units. This framework would include principal haircut options, options for tenor extension, adjustments in interest rates, and easier access to fresh working capital.
Additionally, banks would be provided with incentives and protection from audits for voluntarily participating in the restoration of sick units.
The committee also proposed revival linked credit schemes by introducing sales tax duty linked loan scheme, and treat fresh lending for revival.
Furthermore, the committee recommended the establishment of a National Industrial Revival Commission, which would focus on classifying sick industrial units, creating tailored recovery plans, and ensuring coordination for financial and regulatory support.
A digital portal would be established to address issues faced by sick industrial units, with representatives from the Ministry of Industries, Ministry of Finance, State Bank, and SMEDA participating in the commission.
The committee also proposed that banks prominently display all export finance products on their websites.
Credit provision for SMEs was also under consideration, alongside measures to support the manufacturing sector.
Haroon Akhtar Khan directed the Ministry of Industries and the SBP to collaborate with banks in developing a long-term financing policy at a fixed rate to be finalized soon.