Pakistan Textile Exporters Association (PTEA) has stressed for payment of incentives under textile policies 2009-14 & 2014-19 with release of supplementary grant or through promissory notes as a major portion of working capital had been blocked in this respect. Immediate payment of these incentives would help accelerate maximum industrial growth and significant increase in exports.
In a statement here on Monday, PTEA chairman Khurram Mukhtar appreciated government's move for liquidation of outstanding refunds through promissory notes; however, he was concerned over long outstanding liquidity under textile policy incentive schemes.
Expressing apprehensions, he said that inadequate liquidation of refunds would result in failure of getting desired results as huge amounts of exporters are still stuck up against textile policy incentive scheme.
Giving details, he said that exporters' claims of Rs10,300 million are outstanding against export finance markup support, Rs1,500 million against markup rate support, Rs19,405 million against technology up-gradation fund, Rs434 million against reimbursement of EOBI & social security contribution of women and handicapped employees of textile industry; whereas Rs2,500 million are outstanding against Drawback of Taxes & Levies (DTL) 2009-11. Moreover, huge amounts of Rs10 billion are outstanding on account of income tax; whereas Rs10 billion is pending against income tax credit u/s 65B & 65E. With huge shortage of funds, textile industry is unable to tap its potential in accordance with capacity.
Government should release supplementary grant for payment of textile policy incentive claims to get maximum industrial growth and significant increase in exports, he demanded.
Appreciating government's revolutionary initiatives to provide an enabling environment to the textile export industry, he hoped that supply of energy inputs at subsidised rates, liquidation of refunds through promissory notes and withdrawal of sales tax and custom duty on cotton import will act as a driving force towards an economically stable & prosperous Pakistan.
This is the right time to strike the textile industry as Pakistan is all set to accelerate its economic growth, he said. He demanded the government to release supplementary grant for payment of textile policy 2009-14 incentive claims or entitle these payments through promissory notes.
Underlining the importance of textile sector, PTEA vice chairman Muhammad Idrees said that textile industry has an overwhelming impact on the economy with its 57 percent share in country's exports and 8.5 percent in GDP; whereas textile exporters are major stake holders in foreign exchange earnings, keeping industrial wheel running, generating employment and promoting exports.
Government should extend full support to the major industry contributing towards economy. Terming the decreasing trade deficit as good sign for the economy, he referred the latest export figures revealed by the Pakistan Bureau of Statistics that a 5.07 percent negative growth in trade balance is witnessed in first half of current fiscal against the same period of outgoing fiscal year. Pining high hopes, he said that government's progressive initiatives have put the trade and industry on the track.
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