4 banks join hands to boost textile industry

LAHORE - The four international as well as local banks have provided trade finance coverage of 110 million euros to Ibrahim Fibers Limited to import modern German machinery for production of polyester staple fiber and polyester chips. Due to this trade finance the Ibrahim Fiber’s polyester production capacity will further be increased by 650 tons per day to 1,250 tons to make it more than double.

The MCB Bank, Asian Development Bank, International Finance Corporation and Citibank have announced that they have completed a trade transaction that will help boost the textile industry in Pakistan, a sector that accounts for over 60 percent of the country’s industrial activity, said a press release, posted on the website of the ADB.

It is to be noted that last year, ADB’s Trade Finance Program supported over $600 million of cross-border trade in Pakistan. Over the past six months, IFC has provided Pakistani banks with $328 million in trade finance guarantees, a $125 million increase in guarantees compared to the same period last year. The trade financing helps Pakistan increase cross-border trade, and benefits many important business sectors.