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|Title : Jang, Nawa e Waqt, Aman|
|Published Date : 13 Apr 2016|
Textile exporters have demanded the Government to immediately release blocked liquidity in sales tax, custom duty drawback and income tax refund regime as cash flow crunch is adding to their miseries.
Chairman Pakistan Textile Exporters Association Asghar Ali, in a statement here on Tuesday, said that delay in release of huge funds that runs into billions had triggered serious liquidity crunch for cash starved textile exporters and manufacturers that might lead to closure of several industrial units. Government is hampering the growth of the most productive textile industry by delaying the exporters and manufacturers their right of refund, he said and added that Government should take realistic view of the matter and release the long outstanding refunds at the earliest. Criticizing the current refund regime, he said that the process to get refunds is so lengthy and cumbersome that takes months for exporters to get their own money refunded and exporters are bearing huge financial cost on their own hard earned stuck-up money. Elaborating he said that refund claims of goods exported 12 months earlier are still unpaid. Government, at several times, set deadlines of liquidating the long outstanding refunds of the textile industry but each time could not meet the deadline. In the present scenario when economy needs resources for expansion, squeezing of business would be harmful, he added.
PTEA Chairman Asghar Ali termed the implementation of zero rating regime for export-oriented sectors as the right move that would help to restore the competitive edge for textile exports; however he stressed for immediate payment of billions of rupees blocked in refund regime to compete well in international market. Concerning over continuous export decline, he said that competing countries are rapidly multiplying their exports just because of the edge they have on the cost of doing business and other incentives offered by their Governments but here export oriented sectors are deprived of their basic working capital. Pragmatic policies in consultation with stakeholders need to be formulated to reduce the cost of business by fixing rates of inputs in line with competing countries in the global market to create a level playing field, he suggested.
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. He demanded immediate release of blocked funds in refund regime without any discrimination enabling textilers to retain their hard earned export markets at this time of tough competition in international markets.