What Is The Background Of PICIC?

Any industrial unit needs only working capital but also long term capital to finance the purchase of land, building, machinery, and equipment.

To achieve this objective Pakistan Industrial finance Corporation was established in as early as 1949, which flipped the industrialization process of Pakistan, but it had two limitations.  First, it could only finance the needs of existing industries.  Secondly, it could not available foreign exchange to import new machinery and equipment.

Because of these two weaknesses the need was felt to set up a specialized financial institution that could help establish new industries, and finance the existing industries to carry out their programmes for expansion, balancing, and modernization, and it could also provide for foreign exchange to finance the import of machinery and equipment.  Similar institutions had already set up in India, Turkey, and many other third world countries.  These needs and examples brought into being Pakistan industrial Credit and investment Corporation (PICIC).  The PICIC not only provides long term loans for the establishment or expansion of industrial units but also makes arrangements for foreign exchange for them to finance the import of machinery and equipment.  It has been establishment with foreign investment.  It helps to setup new mills and industrial units, and finances the import of machinery by providing foreign exchange.