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|Title : Business Recorder, Nawa e Waqt, Duniya, Aman, Millat 5-5-2016|
|Published Date : 01 Jun 2016|
Pakistan Textile Exporters Association (PTEA) has stressed the Government to act decisively and rescue the textiles industry from financial crisis as worst ever cash flow crunch has brought the industry at the verge of disaster. Despite the record revenue collection of Rs. 2.1 trillion in nine months, non-payment of exporter’s outstanding refunds is unjustified.
In a statement here on Wednesday, PTEA Chairman Asghar Ali said that Government, on the one hand, is claiming record revenue collection in running fiscal year while on the other hand exporter’s refunds amounting to Rs. 30 to 40 billion are still unpaid on account of sales tax, Duty Drawback and Income tax refund claims creating severe cash flow crunch. Government, at many times give firm assurances for payment of refunds but each time failed to keep its promises of releasing the stuck refunds. FBR, under the law, is bound to release refunds within 45 days but there are delayed refunds for the years, he said. In many cases, refund processing orders, which are to be honored in a certain time, had been issued but cheques are not issued for a year. He said that textile exporters are badly deprived of liquidity while the Government is reflecting the stuck up refund amounts in its revenue account which is not a fair practice. On the other hand, FBR is illegally favoring some influential exporters by issuing out of turn cheques of billions against their refund claims violating the policy which is clear favoritism and discrimination. We are failed to understand that why exporter’s refund claims are withheld depriving the exporters from their basic working capital. The issue is being taken up by PTEA at various forums but Government does not understand the gravity of the matter and no remedial measures are taken to ratify the situation, he added.
PTEA Chairman was of the view that no doubt, the textile industry has become partially operational with the availability of RLNG but non-payment of outstanding refunds is yet proving a major stumbling block in smooth running of the industry. Textile industry is unable to utilize resources due to liquidity shortage now, he added. Finance is imperative to run the wheels of industry; whereas major portion of finance has been blocked in refund cycle. Government owes billions of rupees to the textile industry; on the other hand, the industry has been compelled to borrow from banks. Lack of basic working capital has been a cause of serious concern for exporters and they are facing embarrassment and humiliation from their suppliers for being unable to pay them due to severe liquidity crunch in lieu of non-payment of refunds, he added. Export industry being life line of national economy is a very sensitive sector and any disruption 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 elaborated. FBR is hampering the growth of the most productive textile industry by denying 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
PTEA Chairman demanded the Government to take stock of the situation and step forward to save the largest export earning industry by immediate release of unsettled refunds across the board without any discrimination and favoritism to save the industry from bankruptcy.