Payment of duty drawback claims of exporters: Textile Ministry seeks release of Rs 17 billion

Textile Ministry has sent a summary to the Ministry of Finance to release Rs 17 billion on an urgent basis for payment of duty drawback claims of the textile exporters, it is learnt. Informed sources in the Textile Ministry revealed that a sum of Rs 1.6 billion has already been disbursed to the State Bank of Pakistan (SBP) this year to reimburse the claims of the exporters on pro-rata basis.
The sum constitutes 14 percent of the total amount of the duty drawback claims. Moreover, a sum of Rs 7.5 billion was also sanctioned for the purpose in last year's budget. It is expected that claims worth around Rs 17 billion would be cleared by June 30, 2011, sources maintained.
Sources further revealed that the Textile Ministry has obtained the details of the textile exporters' refund claims and the Ministry has extended an assurance to the textile exporters that all their duty drawback claims would be cleared in time. In this regard a letter has been sent to the Finance Ministry to release Rs 17 billion immediately to pay duty drawbacks to the textile exporters, sources maintained.
Sources further revealed that SBP had raised some doubts regarding disbursement of Rs 1.6 billion, which have been now clarified and the Textile Ministry has directed it to make payment for the claims on pro-rata basis. On the other hand, textile exporters have accused the government for its failure to clear duty drawbacks claims despite the fact that textile industry was facing severe financial crunch.
Talking to Business Recorder, representatives of different Associations claimed that the Ministry of Finance has released Rs 1.6 billion to reimburse the duty drawback claims of the exporters. However the SBP has yet to pay the money to the exporters. The SBP has asked for clarifications from the Finance Ministry regarding distribution of the money and the exporters have yet to receive the amount against their claims.