Ministry of Textile Industry had issued
Technology Upgradation Fund (TUF) Order
2016 for the Textile Sector, vide notification
No. 3(19)TID/15-RDA dated 3rd October, 2016.
In terms of the said Order, the Federal
Government may provide one time “financial
support” per annum to the manufacturers
in textile sector for import and installation
of new machinery, as per the rates and limits
specified in schedule-I enclosed with the
Order / Scheme. A copy of the notification,
containing the eligibility criteria and
the terms and conditions of the Scheme,
is enclosed for information and compliance.
2. Now, Ministry of Commerce and Textile (MOC
& Textile) (Textile Division) has informed
us that Finance Division has released funds
to make following payments during current
financial year under above scheme of the
Government of Pakistan:
• Letter of Credits (LCs)
retired during the period from 01-07-2016
to 30-06-2017 for import of new machinery
3. Accordingly, banks / DFIs may process
the requests for financial support of the
eligible units of Textile Sector duly registered
with the MOC & Textile (Textile Division),
strictly in compliance with the terms and
conditions prescribed in the Scheme. In
this regard, it is advised that:
(i) Banks/DFIs may submit the claims for
“financial support” only against
the machinery imported during the period
mentioned in Para 2 above and keeping in
view the terms & conditions of Scheme.
Duly completed claims as per formats
attached with this circular, may be lodged
with the concerned offices of SBP-BSC up-to
June 20, 2018.
(ii) Claims duly completed in all respects
shall be processed by the offices of SBP-BSC
subject to the condition that documents
/ papers as mentioned in the Scheme notified
vide Ministry’s notification No. 3(19)TID/15-RDA
dated 3rd October, 2016 and prescribed form
(format attached) have been enclosed with
the claims.
(iii) Attested copies of MOC & Textile
(Textile Division) certificate and report
of PBA’s approved surveyors and original
certificate of the internal audit of bank,
confirming that the support claim is within
the terms & conditions laid down in
the Scheme, should also accompany the claims.
(iv) Subject to the availability of budgetary
allocations, eligible amount of support
shall be released to the banks / DFIs through
credit to their accounts maintained with
the office of SBP-BSC. The banks / DFIs
will pay the amount to the respective units
within one working day after receiving credit
into their accounts under intimation to
the concerned office.
(v) Banks/DFIs should ensure as per their
own arrangements that the facilities are
not availed in duplication i.e. plants,
machinery & equipment financed under
SBP’s Long Term Re-finance Facilities
or any other support or concession of Government
of Pakistan, shall not be eligible for the
support under this Scheme. The units availing
this facility cannot apply for the LTFF
or any other support for the same plant,
machinery and technology. The banks/DFIs
should also take an undertaking from the
beneficiary of the Scheme that after availing
this support, they shall not apply for LTFF
or any other support, against the same plant,
machinery and technology.
(vi) Banks/DFIs will ensure that
no loan of any beneficiary falls under the
category of NPLs as on the date of submission
of claim to the office of SBP BSC as well
as till the time of payment by SBP BSC.
(vii) Any violation of the terms and conditions
of the Scheme shall attract the fine prescribed
in the Scheme.
4. In case of any query or clarification
related to the terms & conditions of
the Scheme, Ministry of Commerce and Textile
(Textile Division), Government of Pakistan
may be contacted.
5. Banks / DFIs may bring above Scheme
to the notice of all their branches / other
relevant stakeholders.
Attachments:
1. TUF Order 2016
for Textile Sector - Attachment to IHnSMEFD
Cir 02 of May 2018.pdf
2. Claim Form-TUF
Scheme 2016- Attachment to IHnSMEFD Cir
02 of May 2018.docx