Hit by cash crunch, Pakistani textile exporters have urged the government to immediately intervene to check drastic fall in exports by immediately releasing the outstanding refunds of textile exporters.
In a statement, Pakistan Textile Exporters Association (PTEA) chairman Asghar Ali said that extreme cash flow crunch is a major cause of export decline. He appealed to the government to take steps to rescue the ailing textile industry.Hit by cash crunch, Pakistani textile exporters have urged the government to immediately intervene to check drastic fall in exports by immediately#
“There is a capital blockage for textile exporters as their major capital remains stuck in sales tax, custom duty drawback and income tax refund cycle, causing a major dent to textile exports,” he said.
The PTEA chief criticised the current refund regime, pointing out that refunds of exports made 12 months earlier were still unpaid. While appreciated the announcement of payment of refund claims up to Rs 5 million as a positive development, he said that under the current refund regime, affected claimants were not in a position to utilise liquidity, which they normally do four times in a year for manufacturing and exporting of consignments.
Another PTEA leader Ahmad Kamal said government should bail out the textile industry and textile exports sector from the crisis by removing hurdles. He also demanded immediate release of blocked refunds.
Kamal said the situation is ominous for exporters because rising production costs have rendered many of them incapable of competing in the international market. To keep the industrial wheel running and provide jobs, it was imperative to facilitate optimum industrial activity, he added. (SH)
Fibre2Fashion News Desk – India
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