RECORDER REPORT

KARACHI: Textile exporters have expressed disappointment over the next fiscal year budget and said that as usual export sector has been neglected in the budget.

Muhammad Jawed Bilwani Chairman Pakistan Apparel Forum has said that once again export sector has been completely neglected in the next fiscal year budget like in the past budgets. Just hopes and assurances have been given to the exporters in the budget and announcements have been made without any firm commitment, he added.

Previously, the sitting Prime Minister gave assurance to release all pending refunds and rebates by 15th February, 2018 again turned as an eye wash as exporters’ refund worth billions of rupees still yet to be released, he added.

Now again in the budget the government has announced to release the refunds within next 12 months. How it is possible that coming government will fulfil such promises”, he questioned.

He has welcomed some measurers including announcements of Rs 25 billion packages for Karachi, continuation of Tax Credit on BMR on new investment/establishment of new industry and reducing of tax slabs.

He said that the exporters’ demands in budget were not given deserving considerations. The exporters had demanded for abolishment of Export Development Surcharge, transform Zero Rating from SRO System into an Act, immediate disbursement of exporters’ refunds, separate and reduce tariff of electricity & gas for the five zero rated export sector and import of yarn manufacturers-cum-exporters under DTRE and DTRE rules need to be revisited to make them export-friendly. However, these demands were not addressed, Bilwani said.

He voiced that exports cannot be increased with a mere lip service and dubious statements given by the government high-ups for their political mileage but actually requires practical steps and measures by the government to facilitate exporters.

Commenting on the budget for the year FY19, Ijaz Khokhar Chief Coordinator Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has said that there are several flaws in the budget and even no new incentive has been announced for the industry, which is already facing multiple challenges.

He said that government has increased its expenditures, but not announced measurers to increase the revenue.

Despite that last fiscal year announcement that all the pending sales tax refunds whose RPOs have been sanctioned by 30th April 2017 will be paid in two parts, still billions of rupees of exporters’ refunds of sales tax, customs rebate, withholding are pending with the federal government, Khokhar informed.

Presently, exchange rate is unstable, of which exporters are facing difficulties to finalize foreign export deals. However, despite that government has not presented its stance on exchange rate, he added.

“There is need that government should present clarity about the exchange rate as in the current situation, it is difficult for the exporters to make any price commitment with foreign buyers”, Khokhar said.

He said that although the government has announced to continue the zero rated status for five sectors, however our demand of implementation of this status through an “Act” has not been addressed.

Shabir Ahmed Patron in Chief Pakistan Bedwear Exporter Association (PBEA) said that exporters particularly textile exporters are very disappointed with the budget and categorically rejected this budget.

It’s only window dressings in the budget and there is nothing in it for the exports oriented industries. “It seems that budget has been presented without proper homework and we believed that Pakistan’s economy will go down due to this budget”, he added.

Ahead of general election, it was much better for the government to announce budget for 4 months or in fact it should left to the caretaker or newly elected government.

He said that despite the fact, billions of rupees refund claims of textile sector are in pending, the budget has nothing for the early pending payments. In fact the government has lost its credibility after the miss commitment on refund issues, he added.

Shabbir said that with this budget it is being expected that fuel prices would increase and eventually electricity and gas prices will also move upward, resulted surge in cost of doing business, he mentioned.