Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Chairman Irfan Ali has strongly opposed the imposition of 10 percent regulatory duty on the import of cotton yarn. Reacting over the government's decision to impose regulatory duty on the import of cotton yarn from India, he termed it a death warrant for the value-added textile industry. "The country's exports are already declining and an additional input cost would be a death warrant for the most important foreign exchange earning sector," he said.
He appealed the government not to make any decision in isolation or just meet the demands of APTMA. He demanded of the government to release the refund claims of garment exporters to the tune of Rs 12 billion. In an SOS to the Prime Minister, Finance Minister and FBR Chairman, Irfan said that despite being the largest exporting industry and highest employment provider, the garment sector was facing multiple issues, with DLTL claims being the most important one. "Currently about Rs 12 billion claims are pending with the government but the authorities concerned have not issued a single penny despite an outlay in the current budget," he added.
Irfan said that PRGMEA officials had met with the member Sales Tax and Customs, Federal Board of Revenue, several times but to no avail. He pointed out that instead of resolving the energy crisis, the exporters were being constantly bogged down in meaningless administrative procedures. The government should play a role of business facilitator instead of a regulator, he said.
"The government should ensure gas and power supply to the industry to help exporters cut their energy costs," he said adding that due to gas shortages, mills could not process our fabrics in time. He said that with this productivity level, the country could not compete with Bangladesh let alone India or China. Irfan said that the government was anticipating enhancing the country's exports by $1 billion annually following the GSP plus status, however, the exports had plunged in last several months mainly due to energy shortages.
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