The exporters have postponed their protest against non-release of multiple tax refunds, accumulating to the tune of Rs 343 billion, which they said has badly hit the industrial production. The associations of five export sectors on Monday announced to postpone their planned protest, which was to be held from February 15 to March 3, against the government's apathy towards ending the financial ordeals of the exporters.
"The country's exports have fallen by 14.37 percent to a 32-year low," Pakistan Apparel Forum Chairman Javed Bilwani told a joint news conference here at the PHMA House. He warned the federal government of countrywide protests if the refund claims were not released. He said that the protest was put off due to a meeting with the prime minister to sort out the issues.
He also asked the federal government to reduce the power tariff for industrial users as per the prime minister's announcement on December 29, 2015. Bilwani slammed the government for not implementing the incentive package announced by the prime minister in a meeting with the representatives of industries on September 11, 2015. "Despite the passage of five months, no package has been provided yet," he added. He said that the government had been holding billions of rupees refunds of the exporters, which continued to reduce their industrial production and exports.
Bilwani recalled that Finance Minister Ishaq Dar had during his budget speech announced to release all refunds within three months. He said that the government had "failed" to deliver on the economic front. "The incumbent government has completely failed to lift the country's exports," he added. He was of the view that the government had adopted "wrong" economic policies to arrest the fall in exports.
Abdul Rasheed Fodderwala, Chairman, Pakistan Hosiery Manufacturers & Exporters Association; Shaikh Shafiq Rafiq, Central Chairman, Pakistan Readymade Garment Manufacturers & Exporter Association; Khawaja Muhammad Usman, Chairman, Pakistan Cotton Fashion Apparels Manufacturers & Exporters Association; Zulfiqar Ali Chaudhary, Chairman, All Pakistan Textile Processing Mills Association; Rafiq Godil, Former Chairman, Pakistan Knitwear and Sweater Exporters Association; Abdus Samad, Chairman, Pakistan Cloth Merchants Association; Fawad Ijaz Khan, Patron-in-Chief, Pakistan Leather Garments Manufactures and Exporters Association and Muhammad Naeem Khokhar, Senior Vice-Chairman, Pakistan Carpet Manufacturers & Exporters Association also spoke on the occasion.
They expressed concern over the government's policy of ignoring the country's foreign trade. "The government is continuing to delay the release of sales tax refund claims, custom rebate claims and DLTL claims," they said, adding that the non-release of funds had badly hurt the export sector.
They demanded of the government to speed up release of the held-up payments and revive 'no payment no refund' system. Besides, they sought reduction in power, gas and water tariffs for the export sector. "The power rate in Bangladesh and India is $0.10/kwh, while in Pakistan $0.14/kwh. The industrial captive power plants' gas tariff of Bangladesh is $3.01/mmbtu and India's is $4.66/mmbtu, while in Pakistan it is $7.68/mmbtu," they said. Following the joint press conference, they staged a protest at the PHMA House wearing black armbands.
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