President Dr. Arif Alvi, on Monday, inaugurated the Service Long March (SLM) tire factory in Nooriabad, Karachi, and expressed satisfaction over the increasing investment in Pakistan. The factory has been established with the joint efforts of Chinese and Pakistani investors.
Appreciating the Chinese government and its leadership, he said that there were many sectors like agriculture and auto in Pakistan where Chinese companies could invest, which would mutually benefit both countries. Further adding that said several steps had been taken to attract foreign investment and promote export through value-addition in the country.
President Alvi further remarked that during the period of 2013-18, tires smuggling witnessed a rise, but now manufacturing in the country would help control the menace.
The President lauded the Governor State Bank of Pakistan (SBP) and said that he had done a tremendous job by facilitating the business community in the country. “No country can prosper, if stakeholders are not included in the policy-making process,” he added. The president also urged the corporate sector to create employment opportunities for women and disabled persons.
Speaking at the occasion, Governor State Bank, Dr. Reza Baqir, said that Pakistan’s export potential is great, and the company benefitted from the central bank’s Temporary Economic Refinance Facility (TERF) scheme announced during the COVID pandemic.
The SBP had launched TERF back in March 2020 to support sustainable economic growth, following concerns of businesses over order cancellations and recession in the country.
The facility provides concessionary refinance for setting up new industrial units. Refinance under the facility is available through banks and Development Financial Institutions to all sectors.
Governor Reza Baqir said that Service Long March (SLM) tire factory is a successful case for TERF. He said that the company availed $50 million in financing to meet its capital needs and is now expecting to reach annual exports of $300 million.
Governor SBP, while calling for diversification, said that 60 percent of the total amount approved in TERF is for the non-textile sector.
He informed that loans for small businesses through commercial banks are being given through this scheme on a priority basis. Dr. Reza Baqir said that apart from financing export-based industries, TERF has also facilitated import-substitution industries.
He said that Rs. 435 billion has been approved under TERF financing, out of which Rs. 312 billion had already been disbursed.
At the occasion, the CEO SLM, Usman Saeed, said that SLM was the export-oriented company in the country, adding that a major share of the profits of the company was used for the welfare of the people in the country.
“We have established hospitals serving the poor people in the country and in addition, all kinds of support have been extended to other foundations in the country,” the CEO informed.
It’s Umer Saeed CEO