By Jawad Ahmed ISLAMABAD, April 08 (INP-WealthPK): The State Bank of Pakistan's (SBP) efforts to keep the economy from slipping into recession during the Covid-19 pandemic are paying off, said Governor State Bank of Pakistan (SBP) Reza Baqir. Through Temporary Economic Refinance Facility (TERF) to jump-start investment in the country during the Covid-19, the SBP enabled investors to acquire the needed funded investment from commercial banks on highly competitive terms for one year to satisfy their orders and maintain their capital investment plans, he added, reports WealthPK. In March 2020, in response to investor concerns about the spread of a virus and an economic downturn, the SBP decided to provide the needed funding to commercial banks for one year at a highly attractive interest rate of a maximum of 5% for a fixed 10-year period, he said. “The SBP offered a time-bound incentive to the investors, in which they would gain if they did not delay their investment decision”, Baqir added. Pakistan's textile sector is vital since exports account for the majority of the country's foreign earnings. But there is a need to promote other industries as well as the textile sector. Baqir said apart from the SBP efforts to boost the textile industry, the central bank had allocated 60% of TERF loans to non-textile enterprises. These measures will not only promote the export capability of these industries, but also be equally helpful to promote import substitution. “The SBP has approved Rs435 billion under the TERF, of which Rs312 billion has been disbursed; these funds were not just given to big companies, but also to small and medium businesses”, Baqir stated. The governor emphasized Pakistan's latent export potential and the need to utilize it. “When a well-defined and timely-implemented policy is put in place, it can and will achieve the potential to which it is entitled”, he remarked. Since the start of FY21-22, large industries have recovered, and production has continued to climb. According to the State bank estimates, the incentives [provided by the central bank] and the government’s wise decision to recommence commercial activity and the adoption of smart lockdown lifted spirits. It is pertinent to mention that Pakistan’s industrial output rose for the seventh month in a row, surging to a robust 7.6% in the first seven months (July-January) of FY21-22. Pakistan exports are also increasing at an unprecedented rate. Exports reached $20.617 billion in the first eight months (July-February) of FY2021-22 compared to $16.093 billion in July-February 2020-21. Pakistan's textile exports have also soared to new heights, reaching Rs1.55 billion in January 2022, the highest monthly total in the sector's history.