Home / Knowledge / News / Textiles / Unpaid drawback claims affects Pakistani textile exporters
Unpaid drawback claims affects Pakistani textile exporters
Nov '11
The Pakistan Textile Exporters Association (PTEA) has claimed that working capital of the country's textile exporters' worth about PKR 25 billion is blocked under several duty drawback schemes, which is affecting the country's exports and is also causing a negative effect on the nation's economy.

After the end of quota system in textile trade, exporters were provided with research and development facilities in order to help them enhance their exports. However, the facility was suspended after a couple of years in 2008, following which some refund claims are still lying unpaid, which is causing the exporters to suffer financial crisis and is also hampering their business flow as their working capital remains blocked.

Meanwhile, with a view to help the textile exporters, the present Government introduced another drawback of local taxes and levies (DLTL) scheme under its Textile Policy in 2009. The scheme met with positive response from the side of exporters and the country's overall exports surged above US$ 24 billion, while textile exports jumped above US$ 13 billion.

However, the drawback facility as promised under the scheme was not honoured fully and just 14.67 percent of the claims submitted by the exporters have been paid till now, due to which considerable amount of working capital of the exporters is still blocked with the Government.

Thus, while on one hand the working capital of exporters is getting blocked in Government's duty drawback schemes, the cost of production is also going up with each passing day on the other. The twin affect is rendering the Pakistan textile industry's exports unviable on global front, PTEA said.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search