FAISALABAD: Pakistan Textile Exporters Association has demanded the government intervention for the release of huge amounts of textile exporters, stuck up in refund regimes and also sought to allow zero rating on textile exports.
PTEA Chairman Sheikh Ilyas Mahmood and Vice Chairman Adil Tahir termed the liquidity crunch as major hurdle in promotion of exports. The textile industry had been facing unprecedented crises since many years and consequently, a sizeable textile capacity had been severely impaired, they said.
“Textile exports in terms of quantity and value could not get momentum and remained below the bar. Now GSP plus facility has brought new hope of significant jump in textile exports but lack of necessary funds could hurt the outcomes of this duty relief,” they argued.
They termed the withdrawal of zero rating and imposition of 2 percent sales tax on supplies detrimental to business activities. They said that 85 percent of textile produce was exported in one or another form, with only 15 percent left for local consumption. Therefore, zero rating of the entire value chain for the export was imperative to remain competitive in the international market, they added.
Mahmood claimed that financing was imperative to run the wheels of industry but without this, no one could even think of running industry and reap the benefits of GSP plus. “The government should set its priorities right and accord preferential treatment to textile sector to get full advantages of duty waiver facility and save the industry and the economy,” he added.
Terming GSP plus a golden opportunity, he said that the facility would help bring back precious investment in textile industry that had been shifted out of Pakistan.
He demanded of the government to release funds for payment of the exporters’ refunds. He was of the view that without payment of the refund claims, uninterrupted energy supply and tax relief, harvesting the advantages of GSP plus was not possible.
