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Uncertainty over DLTL dampens Christmas garment orders
28
Jul '11
The prevailing uncertainty over extension of the Drawback of Local Taxes and Levies (DLTL) scheme is causing the garment exporters in Pakistan to lose Christmas orders.

Usually by this time, Pakistan's woven garment industry books bulk orders from foreign customers for Christmas season, but the uncertainty over continuation of the DLTL scheme has not resulted in such orders this year.

Garment exporters say that the Ministry of Textile has not responded to their continued demands for prolongation of the DLTL scheme to further boost the export of garments.

In spite of several promises extended by Ex-Minister for Textile Industry Rana Muhammad Farooq Saeed Khan and former Finance Minister Shaukat Tarin on different occasions that the DLTL scheme would not be discontinued before the end of the Textile Policy 2009-2014, the scheme is being withdrawn.

Exporters say that this has almost made the target of US$ 25 billion set for this fiscal unattainable. It is especially so because garment exporters in other competing nations such as China, India and Bangladesh are provided duty drawbacks of 9.5 percent, 17 percent and 11 percent respectively.

Fibre2fashion News Desk - India

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