LAHORE: The government has been demanded to implement the zero-rated regime announced by the Prime Minister for the value-added textile industry immediately instead of July 2016.
The industry stakeholders also asked the government to issue the bonds for exporters committed by the finance minister without any further delay.
They said that the value-added textile industry would welcome the PM announcement of zero-rated regime for exporters only when it is implemented. “We hope the govt will fulfil 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% so far.”
Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) chief coordinator Ijaz Khokhar said that the government announced several incentives verbally all of which have proved to be a lollypop for the industry, as none of them have been implemented so far.
He 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 Rs3/unit.
PRGMEA SVC Sohail A Sheikh observed that it was unfortunate that none of the relevant ministries bothered to approach the industry for taking any preventive measures to stop freefall of export despite GSP Plus status by the EU.
PRGME requests the PM to intervene personally and take daring steps to save all export oriented industries. He said that zero rated facility would save the exporters from a lot of troubles but it should be notified as early as possible to avoid complications.
Sohail Sheikh also expressed his concerns that most of the promises of the government for support of export oriented sectors remained unfulfilled, therefore notification about zero rating should be issued immediately.
