FAISALABAD: The textile exporters have urged the government to immediately release their outstanding refunds, which will help enhance exports.
Pakistan Textile Exporters Association (PTEA) Chairman Asghar Ali, in a statement, said that extreme cash flow crunch had squeezed the financial streams and breading the liquidity jerks, adding that exports were falling consistently both in value and quantities. He termed severe liquidity crunch as major cause of export decline.
Asghar appealed to the government to rescue the ailing textile industry as extreme cash flow crunch was hampering export growth and adversely impacting the industry. There was a capital blockage for textile exporters as their major capital remains stuck-up in sales tax, custom duty drawback and income tax refund cycle, causing a major dent to textile exports, he added.
Criticising the current refund regime, he said that refunds of exports made 12 months earlier were still unpaid. He lauded the announcement of payment of refund claims up to Rs 5 million and termed it as a positive development. He said that under the current refund regime, affected claimants were not in a position to utilise liquidity, which they utilise four times in a year for manufacturing and exporting of consignments.
