PTEA raises concern over delay in release of funds

26 Jul '17

2 min read

Pakistan Textile Exporters Association (PTEA) has raised concern over delay in release of funds under Rs 180 billion export package announced by the prime minister earlier this year. Of the package, only Rs 4 billion has been released by the government, said PTEA chairman Ajmal Farooq. The Pakistan textile industry contributes around 8 per cent of the national GDP.

Delay in release of outstanding sales tax and custom refund of Rs 200 billion is hindering the working of the textile industry, said Farooq in a statement. The survival of the textile industry has become difficult with the decline in the exports.

Farooq said that the government should take immediate measures to improve the exports of the textiles sector. Further, he points out that the textile exporters are yet to receive the Refund Payment Orders. In the budget 2017-18 finance minister Ishaq Dar had announced that sales taxes will be refunded by August 14, 2017 for RPO's sanctioned by April 30, 2017.

In a bid to increase the exports of the textiles sector, the government should reduce the manufacturing cost, lower the supply charges and release the refunds at the earliest, said PTEA’s vice chairman Muhammad Naeem. He has stressed for immediate payment of all outstanding refunds as undue delay in release of huge funds that runs into billions has resulted into liquidity crisis for cash starved textile exporters and manufacturers. (RR)

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