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PRGMEA urges govt to release DLTL claims immediately
Aug '11
Chairman Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) North Zone Mubashar Naseer has urged the federal government to release immediately the stuck up claims of Rs 23.42 billion under the Duty Drawback of Local Taxes & Levies (DLTL) Scheme.

He said the State Bank of Pakistan has cleared only Rs 5.3 billion so far out of total claims of Rs 28.72 billion submitted by exporters until fiscal year 2011, causing hurdles in smooth business of woven garments manufacturers and exporters.

Not only this, he added, payment of rebate and customs drawback and sales tax refunds are withheld by the government.

Chairman PRGMEA also criticized the federal government for its indifferent attitude towards the demand for continuation of 3% Drawback of Local Taxes and Levis (DLTL) Scheme during 2011-12 to sustain growth in country's exports.

He said the woven garment exports have registered about 40 percent growth during 2010-11, while doubling the average unit price, excessively utilizing expensive fabrics in different weights and employing 30 percent of total 3.5 million workforce of textile industry value chain.

According to him, the DLTL has proved a lifeline for the woven garment industry and a cut to it would result into closure of woven garment units, leading to export of raw materials from the country without value addition.

Mubashar said the factors like a dwindling cotton market, rising inflation and absence of energy security have added worries of the garment exporters, having already lost huge Christmas orders due to uncertainty on continuation of the DLTL scheme.

It may be noted that the government had announced DLTL Scheme under the first-ever-five-year Textile Policy 2009-14, setting $ 25 billion exports target in 5 years. While encompassing a broad based agenda including technology up gradation, infrastructure development, skill development, and fiscal measures for ailing textile industry along with removal of regulatory bottlenecks, the government has left the agenda half-achieved with blockage of claims of huge amounts.

Chairman PRGMEA said the process of payment to the exporters is unnecessarily slow and the association has received complaints from many member companies on this count. He said the government policymakers, in recent interactions, were of the view that the association that funds have been released but the SBP staff is suggesting otherwise.

Chairman PRGMEA has urged the government to not only release the stuck up claims immediately but also announce continuity of the DLTL Scheme to facilitate the exporters in finalising fresh contracts with international buyers.

Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA)

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