ISLAMABAD: Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has sought Finance Minister Miftah Ismail’s intervention to exempt all textile export industries against restrictions imposed by the State Bank of Pakistan (SBP) and allow to import machinery and equipment to increase production capacity and enhance exports.
Ismail held a meeting with a delegation of the PHMA headed by its chairman Mian Kashif Zia, at the Finance Division. Deputy Governor SBP, Member Federal Board of Revenue (FBR), and senior officers from the Finance and Commerce ministries attended the meeting. Mian Farrukh Iqbal, Dr Khurram Tariq, Rana Altaf Ahmed, Hafiz Rashid Mehmood, and Tahir Rehman were part of the delegation.
Talking to Business Recorder, the meeting participants stated that the minister was informed that the government, in view of economic uncertainty and financial hardships, has imposed certain restrictions on the import of goods through the State Bank of Pakistan vide EPD Circular Letter No.11 of 2022 dated 5th July 2022, whereby, restrictions have been imposed by means to seek prior permission from SBP’s Foreign Exchange Operations Department (FEOD) on import of all sorts of industrial machinery under HS Code 84 (all codes) which has caused severe unrest in the export industries who regularly import textile machinery and equipment to manufacture goods meant for exports.
To seek prior permission by Exporters shall be cumbersome and inconvenient and shall cause nuisance in export production and timely completion of export orders. Your good-self is well aware that keeping in view the unprecedented set of challenges to the economy, the export is acting as lifeline to earn valuable foreign exchange and hence should be accorded preferable treatment.
They further said that the minister was requested to direct the SBP to exempt all textile export industries registered with Ministry of Commerce (Textile Wing) against restrictions imposed by SBP vide EPD Circular Letter No. 11 of 2022 dated 5th July 2022 and allow all the textile export-oriented industries registered under Export Facilitation Scheme to import machinery and equipment for textile export industries and allow all items of the Textile Machinery vide Ministry of Finance SRO 809(I)/2009 dated 19th September 2009 all HS code as prescribed for the purpose of Balancing, Modernization and Replacement (BMR) in order to increase production capacity to ultimately enhance exports.
According to the official statement issued by the Finance Ministry, the delegation highlighted the contribution of the hosiery and knitwear industry in accelerating and providing growth in all sectors of the economy. The delegation apprised the chair about issues related to taxation, refund of sales tax, electricity and gas tariff etc. Issues pertaining to the response of commercial banks in the opening of LCs, DLTL, and PSW were also discussed in the meeting.
Ismail expressed the resolve of the present government to promote business activities and facilitate the business community to attain sustainable growth in the country. He assured the delegation to resolve their issues at a priority and also stressed the delegation to enhance the export base. The finance minister also directed the relevant authorities to resolve the issues of the hosiery and knitwear industry.
Copyright Business Recorder, 2022
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