LAHORE: The value-added textile sector is going through serious financial crisis as above Rs 205 billion of the value-added textile chain has stuck up with the government.
The Federal Board of Revenue still withholds more than Rs.13 billion under drawback on Local Taxes and Levies (DLTL) claims and about Rs.17 billion sales tax under refund claims, causing immense problems to cash-starved industry.
They said that the sector’s production could grow by over 80pc provided stuck up funds were released immediately. They said that the country has failed to improve its textile exports despite getting the status of GSP plus. The textile export fell by six per cent last month. On the other hand, India had provided full support to its textile sector, giving financial incentives and discount on the import of machinery so that the country could compete with Pakistani goods in the international markets.
