According to the media reports, Pakistan Apparel Forum’s Chairman Muhammad JavedBilwani has expressed concern over the delay in the release of Rs 205.76 billion to the textile exporters under the heads of Draw Back on Local Taxes and Levies and Rs 17 billion sales tax under refund claims.Another thing which he claimed was that the textile sector contributed Rs 11.50 billion in the export development fund, but the textile exporters are still waiting to receive the outstanding dues which the government had promised to release in August last year. Bilwanialso demanded zero-rate duty for export-oriented sector due to the involvement of banks in imports and exports transactions.
On another note, the government is envisaging a new textile policy, but the stakeholders in the textile sector want implementation of the old policy forthwith. Unfortunately, the both textile exports and textile growth are falling and according to textile associations, the textile manufacturing has declined by 55 percent.The funds for the export development should be allocated for the Textile Ministry to boost the textile exports.
The policy makers in the country have missed myriads of chances in the past but never opened the door to opportunities. Bangladesh has taken maximum benefits of the concessions from the United States and European Union and brought the export volume to new heights. With per capital income and volume of economyhalf of Pakistan, its textile exports are more than Pakistan. It was the big achievement of Pakistan to get GSP Plus status, but the policy makers should also go for soul searching as to why the textile manufacturing have fallen by 55 percent.
India, Bangladesh and other countries in the region are providing full support to their textile sectorsby offering them financial incentives and discount on the import of machinery but despite having a businessman prime minister and a businessman president, the country is lagging behind many developing nations even in this region. According to exporters, the previous textile policy was introduced one-and-half year ego without any financial support for the textile exporters. A policy without results is a futile exercise. The main hurdle in the development of textile sector is said to be financial constraints as out of Rs 188 billion only Rs 28 billion were released for the enforcement of the proposed schemes. The textile sector needs a heavy dose of government funds which will definitely give it a new lease of life.
