Chairman of All Pakistan Textile Mills Association (APTMA) Tariq Saud has said the liquidity crunch of large manufacturers cum exporters has started hurting the textile industry exports seriously due to the pending sales tax refunds. Consequently, he said, the manufacturing of exportable goods is being compromised heavily.
He said the Ministry of Finance has announced liquidation of refunds up to Rs 5 million in cases where the Refund Payment Orders have been issued from March 15 to 30.
"This is a positive development and the textile industry is grateful to the Federal Finance Minister Ishaq Dar," he added.
However, he said, it will not resolve the liquidity issues of major manufacturers cum exporters, each of whom has got stuck-up hefty outstanding amounts as refunds up to Rs 500 million.