PRGMEA concerned over delay in payment of Rs 23 billion claims

Chairman Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) North Zone Mubashar Naseer has expressed concern over undue delay in payment of stuck up claims of Rs 23.42 billion under the Duty Drawback of Local Taxes and Levies (DLTL) Scheme.
According to him, the State Bank of Pakistan has cleared only Rs 5.3 billion so far out of total claims of Rs 28.72 billion submitted by exporters until fiscal year 2011. Chairman PRGMEA said not only the exporters of woven garments industry but also the knitwear, home textiles and processed fabrics exporters have no idea as to when their claims would be cleared by the SBP.
Fears of discontinuation of the DLTL Scheme are adding extra pressure to the exporters from these sectors, unable to plan out their future course of action, he said. The PRGMEA North Zone chief said that the discontinuation of the DTLT Scheme, as mentioned by the government quarters, has left the value added textile exporters into lurch for the time being.
It may be noted that the government had announced DLTL Scheme under the first-ever-five-year Textile Policy 2009-14, setting $25 billion exports target in 5 years. Interestingly, the textile value chain has achieved the target during fiscal year 2011 but the government is looking hesitant in playing future role of supporting the sector. While encompassing a broad based agenda including technology upgradation, infrastructure development, skill development, and fiscal measures for ailing textile industry along with removal of regulatory bottlenecks, the government has left the agenda half-achieved with blockage of claims of huge amounts.
Chairman PRGMEA said the process of payment to the exporters is unnecessarily slow and the association has received complaints from many member companies on this count. He said the government policymakers, in recent interactions, were of the view that the association that funds have been released but the SBP staff is suggesting otherwise.
Chairman PRGMEA the Ministry of Finance should immediately call a meeting and announce as when remaining stuck up claims are being cleared. Also, he stressed that the government should announce continuity of the DLTL Scheme to facilitate the exporters in finalising fresh orders with international buyers.