The All Pakistan Textile Mills Association (APTMA) and the Export-Import Bank of Pakistan (EXIM Bank) have discussed measures to expand access to concessionary financing for the textile sector, with a particular focus on new projects and the balancing, modernisation and replacement (BMR) of existing plants and machinery. The discussions are aimed at supporting investment, improving manufacturing capacity and strengthening the export position of Pakistan’s textile and apparel industry.
The discussions took place during a visit to APTMA by EXIM Bank President and Chief Executive Officer Shahbaz H Syed, who briefed textile exporters on the bank’s financing facilities, export support initiatives and future plans. Syed said EXIM Bank would continue working with APTMA and industry stakeholders to improve awareness, access and utilisation of the financing facilities available to exporters.
Syed highlighted the potential role of concessionary interest rates and soft loan terms in addressing financing constraints faced by exporters. According to him, such financing could support investment in new textile projects as well as BMR of existing plants and machinery. The availability of financing on discounted terms could provide textile businesses with greater scope to undertake expansion and modernisation projects linked to manufacturing and export activity.
The EXIM Bank president also urged textile exporters to make use of the discounted financing facilities available through the bank. He said loan applications from the textile sector would be processed on a fast-track basis, with decisions expected within the next fortnight. The accelerated processing timeline is intended to provide exporters with quicker clarity on financing applications and support investment decisions within the sector.
APTMA Chairman Asad Shafi said the textile and apparel industry accounts for more than 60% of Pakistan’s exports and requires institutional support to improve competitiveness and expand capacity. He also highlighted the need for the industry to move towards higher-value activities, including brands and designs. Such a shift would require investment in areas extending beyond traditional manufacturing, including product development and other activities that can increase the value generated from textile exports.
Exporters participating in the meeting also raised the need for timely and affordable working capital as well as long-term investment financing. They identified BMR, technology upgrades and fresh investment in manufacturing as areas requiring financing support. Participants also pointed to research and development, design and brand development as areas where greater investment could support the sector’s future growth and competitiveness.
The exporters further called for EXIM Bank financing to be extended to indirect exporters, arguing that modernisation across the broader textile value chain is necessary to increase overall exports. Their position reflects the interconnected nature of Pakistan’s textile industry, where improvements in one part of the supply chain can require investment and modernisation across other segments as well.
Outgoing APTMA Chairman Kamran Arshad welcomed the operationalisation of EXIM Bank’s export financing facilities and its support for export-oriented industries. Both sides agreed to continue discussions on measures aimed at improving access to export financing, facilitating investment and supporting higher textile exports. The engagement between APTMA and EXIM Bank therefore remains focused on financing availability, industrial modernisation and measures that can strengthen the export capacity of Pakistan’s textile sector.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.