The value-addition sector appealed to the government to release stuck-up refund claims accumulated into billions of rupees immediately so that they could bring change in their machinery and process of manufacturing.
Chairman of All Pakistan Bedsheets & Upholstry manufacturers Association (APBUMA) Syed Muhammad Ahsan Shah appealed to Prime Minister and Finance Minister to look into this serious matter in order to release exporters money which has been held up by the Ministry of Finance for the last several years and has now reached Rs40 billion against refund claims of Duty Drawback of Local Taxes and Levies (DLTL), sales tax and with the customs.
According to him, the government of Pakistan announced the scheme regarding DLTL in 2009 for the exporters, in which 3.0 percent was share for the garment sector, besides additional 1.0 percent drawback was promised to exporters who will achieve an increase of 15 percent in exports, this was never announced. Though the period has been expired in June 2011 still our exporters are waiting for their reimbursement against DLTL. "The stuck-up capital of the exporters has accumulated to around Rs40 billion in terms of DLTL, sales tax and customs while the sector's stuck-up claims are Rs9-10 billion alone in terms of DLTL," Kothawala said adding that due to these stuck-up payments the exporters are facing acute liquidity crunch.
"Now, we are going to prepare ourselves for the GSP Plus status from EU expected to start by early next year but we have to fulfil some conditions for the preferential status. No support is being provided to this vital sector and the exporters are facing severe problems in negotiating orders with EU buyers due to financial crunch," he added.
He said on one hand exporters are being pushed to enhance our declining exports in adverse market conditions while our rightful dues are being withheld, how can we be expected to finance our operations when we don't have the required funds, Shah questioned.
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