Federal Minister for Textile Industry Rana M. Farooq Saeed Khan has said that government will encourage the investment in textile sector. Rana Farooq told the investors that, in first ever new Textile policy of Pakistan it is mentioned that government will contribute part of the investment financing or part of the investment cost. He further said that government will pick-up 50% of interest cost of new investment in plant and machinery. Moreover, for small investments, government will contribute up to 20% of capital cost as a grant. Government has a budget of Rs.1.6 billion in the current financial year that will increase to Rs.17 billion by 2014.