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|Title : The News, Business Recorder, Jang, Duniya, Tijarti Rehbar,|
|Published Date : 04 Apr 2016|
Extreme cash flow crunch has squeezed the financial streams and breading the liquidity jerks. Exports are falling consistently both in value and quantities; Government’s immediate intervention is solicited to check the drastic downfall in exports by immediately releasing the outstanding refunds of textile exporters across the board.
In a statement here today, Chairman Pakistan Textile Exporters Association Asghar Ali termed severe liquidity crunch as major cause of export decline. He appealed the Government to rescue the ailing textile industry as extreme cash flow crunch is hampering the export growth and adversely impacting the industry. There is a capital blockage for textile exporters as their major capital remain stuck-up in sales tax, custom duty drawback and income tax refund cycle, causing a major dent to textile exports. Criticizing the current refund regime, he informed that refunds of exports made 12 months earlier are still unpaid. This is having adverse impact on the employment and the economy of the country. Lack of basic working capital has been a cause of serious concern for exports and a major setback to industry. He appreciated the announcement of payment of refund claims up to Rs. 5 million and termed it as a positive development; however it will not resolve the liquidity issues of major manufacturers cum exporters, each of whom has got stuck up hefty outstanding amounts. He said that under current refund regime, affected claimants are not in a position to utilize liquidity, which they utilize four times in a year for manufacturing and exporting of consignments. Finance is imperative to run the wheel of industry but without this, no one could even think to run industry. Government should set its priorities right and accord preferential treatment to boost the exports and generate industrial activities.
PTEA’s Group Leader Ahmad Kamal said that textile exports are crumbling and the industry and business are squeezing due to non-availability of funds. Government should bail out textile industry and exports from the crisis by removing hurdles and providing of necessary incentives to increase the exports. He demanded immediate release of blocked refunds to enable the textile exporters retain their hard earned export markets at this time of tough competition. Exporters are already working under dire circumstances as the cost of production has increased rendering them unable to compete in international market. Export sector being life line of national economy is a very sensitive sector and any disruption in the tempo or bottleneck in export facilitation not only hurts the exports of the country but also have devastating impact on the industry causing productivity loss, job losses and industrial unrest, he said. To keep the industrial wheel running and providing job employment to maximum working hands in the country, it is imperative to facilitate the optimum industrial activity.
PTEA demanded the Government to bail out textile industry and exports from financial crisis by removing hurdles and provision of necessary incentives to increase the textile exports of the country. They demanded immediate release of blocked funds in refund regime without any discrimination of Rs. 5 million or above enabling them to retain their hard earned export markets at this time of tough competition in international markets.