Pakistan's value-added textile industry has urged the government to implement the zero-rated regime immediately, rather than wait for the federal budget announcement in July 2016.
It has also asked authorities to issue bonds related to Finance Minister Ishaq Dar's commitment to refund claims of exporters without any further delay. Pakistani newspapers have reported.
Pakistan Readymade Garments Manufacturers and Exporters' Association (PRGMEA) Senior Vice Chairman Sohail A Sheikh and Chief Coordinator Ijaz A Khokhar, in a joint statement, said that the value-added textile industry would welcome the PM's announcement of zero-rated regime for exporters only when it is implemented.
“We hope the government will fulfill its commitment this time to restore the confidence of the exporters. If a medicine is not given immediately it would be useless after the collapse of industry. Prime Minister announced to allow zero rated regime from July 2016 but why not from today because every passing day is crucial for the industry at a time when export has declined by 20 per cent so far,” Khokhar said.
He said that the government announced several incentives verbally, but none of them has been implemented so far. Khokhar said that the government is claiming to actively working on a new scheme of issuing bonds in lieu of pending refunds to the taxpayers particularly exporters. But it does not seem to be materialized like other commitments like announcement of textile package and power tariff cut by Rs 3/unit.
He said the government had claimed to issue bonds within one week period which had passed with no sign of any work. There is trust deficit between the government and business community which can be removed if Finance Minister starts consultation with the stakeholders to finalize terms and conditions of bonds, he said.
“PRGMEA wants soft-term bonds as this is exporters' money and not just a borrowing. The value-added textile exporters want their full involvement in the whole working and procedure of bonds release. And for the long-term, the government must include interest at prevailing rate because exporters, who are facing severe liquidity crunch, could borrow money from banks on collateral of bonds,” Khokhar demanded. (SH)
Fibre2Fashion News Desk – India