LAHORE: The Punjab provincial administration has launched a Rs150 billion program aimed at industrial growth and exports. As per sources, the program will provide substantial funding for the industry sector, out of which Rs90 billion has been earmarked for reducing interest rates.
Generous Loan Schemes for Businesses
Moreover, small and medium enterprises (SMEs) will receive interest-free loans of up to Rs100 million. Medium and large industrial units will get financing at a concessional rate of just 3 percent, while large-scale projects can access loans of up to Rs5 billion. The repayment period for these loans will range from five to ten years. Borrowers will also need to maintain a debt service reserve account as a safeguard.
Strong Focus on Exports and Priority Sectors
Moreover, the government has also listed its priorities, such as agricultural value chains, textiles, pharmaceuticals, IT, and manufacturing industries. Cluster development programs will focus on sports goods, leather, and cutlery.
Industrial units should be established and run in Punjab under this program. It is necessary that the participants should have a minimum export share of 50 percent within four years and minimum equity of 20 percent. It is expected that around Rs160 billion worth industrial units will be eligible for this program.
Punjab government is trying to develop industry, provide new jobs, and increase exports in the province through this package. This move comes when the Punjab government is taking efforts to boost the economy and attract new investments.
Punjab government launches Rs150 billion industrial and export program with cheap loans to boost economy and jobs.
