Exports to suffer setback, delegation tells government

As feared, exporters on Friday informed the government that Pakistani exports would suffer a setback in the coming months owing to coronavirus that has propelled the global economies into recession, and demand for Pakistani products, especially apparel, has been reduced considerably.
An official said that a delegation of exporters stated this and sought Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh's help for clearance of pending refunds to exporters to improve their liquidity problem as they do not expect orders, and faster recoveries from their international buyers.
Dr Shaikh chaired a meeting with a delegation of exporters to discuss various issues exporters have been facing after the outbreak of the coronavirus and the evolving position of the global economies and its impact on the export sector of Pakistan.
Advisers to PM on Commerce and Textile and Austerity and Institutional Reforms were also present during the meeting, said a statement issued by the Finance Division after the meeting.
The delegation of exporters briefed the adviser that due to the coronavirus pandemic global economies have gone into a recessionary phase, and the demand for their products especially apparel has reduced to a considerable level. The exports, which had shown an improvement in February and March 2020, will receive a setback in the coming months, they said, adding that in view of the changing position of global trade they had been facing problems with their cash flow situation, and need help and assistance from the government mainly in expediting the re-payments/refunds due so that they could come out of this crisis and resume their businesses as early as possible.
The delegation presented a list of proposals to the adviser finance that could help them improve on their liquidity position, and to run their businesses in the current situation when they are not expecting further orders and faster recoveries from their international buyers.
The delegation told the government that they have decided not to lay off their daily wage staff in this difficult time. Dr Hafeez Shaikh, while discussing each and every proposal in detail with the exporters, stated that he would like to assure them that the government has no intention to keep their money even a day longer, nor does it see any reason to delay the repayments.
"We shall do whatever possible to ease out the exporters, and are committed to provide them relief with earlier repayments of export rebates/duty drawback and general sales tax (GST) refunds," he added.
He said that the GST refunds would be cleared within March and export rebates would be granted within April. The adviser directed secretary finance and chairperson FBR to hold meetings with the relevant stakeholders and provide relief to the export sector.
He appreciated the decision taken by the All Pakistan Textile Mills Association (APTMA) not to lay off their labour in the time of crisis, and advised them to take care of their workers as the government is taking care of them.