FAISALABAD

The textile exporters demanded the government to speed up the process of paying out billions of rupees outstanding tax refunds to get maximum industrial growth and increase exports significantly.

Raising the demand here on Saturday, Pakistan Textile Exporters Association (PTEA) Chairman Sheikh Ilyas Mehmood said that huge amounts of value added textile exporters had been stuck up in sales tax, local taxes drawbacks, customs rebate and federal excise duty refund regimes, creating severe financial crunch and if that amounts were released, exporters could deploy that capital towards expanding their businesses which in turn will help Pakistan’s export earnings grow. Pakistan holds only 1.5% of the global market share in textiles, which means that this industry has strong prospects to grow,” he pointed out. The PTEA chairman claimed that textile exports had crossed 13 billion dollars export bench mark in outgoing fiscal and would be achieving far better results if the circumstances remained conducive. “The liquidity crunch created by the blockage of refund claims will play havoc with the tempo of exports,” he warned, adding that textile industry had aimed at getting maximum benefits from GSP plus facility expected in January and had the ability to hit 15 billion dollar export bench mark in current fiscal. However, it seems not to achieve the desired results in absence of adequate funds, he opined.

Sheikh Ilyas was of the view that the textile industry had taken a severe hit at a time when many of the leading players had invested huge sums in upgrading infrastructure and expanding capacities, planning to meet the growing needs of the export market.

He lamented that the prevailing economic, financial and industrial crises had badly affected the industrial and trade activities, productivity of the major revenue generating textile sector, putting at stake revenue to the tune of more than 13 billion dollar.

The PTEA chairman demanded that the government should bail out textile industry of the crisis by removing hurdles and providing requisite incentives to increase the textile exports of the country. He demanded early release of blocked funds in sales tax, customs rebate DLTL and FED refund regimes to enable the textile exporters retain their hard won export markets at this time of tough competition in international markets and get benefits of GSP plus.