RECORDER REPORT

FAISALABAD: The government has issued instructions to the concerned departments to resolve the problems confronted by the value added textile sector and in this connection Refund Payment Orders amounting to Rs 35 billion would be paid before May 31.

Similarly, a special meeting with Federal Finance Minister Miftah Ismail would also be arranged on Monday to withdraw the regulatory duty on the import of cotton & polyester yarn. These views were expressed by Rana Muhammad Afzal Khan, Chaudhry Abid Sher Ali and Haji Muhammad Akram Ansari State Ministers for Finance, Energy and Commerce & Textile during a meeting held in Pakistan Hosiery Manufacturers & Exporters Association here on Saturday.

Rana Muhammad Afzal Khan said the government had finalized the details of the new textile package which would be announced very soon. He assured that value added textile sector will get maximum incentives in this package. Haji Akram Ansari said that a world class Expo Centre will be constructed over 45 acres of land in M-3 Industrial Estate Faisalabad to hold international level exhibitions. He hoped that this expo was expected to become operational within next two years.

Abid Sher Ali said the government has already ensured continuous and uninterrupted power supply to the industrial sector while efforts are being made to reduce its tariff to the minimum within the given circumstances.

Earlier in his address of welcome Mian Naeem Ahmed, Chairman Pakistan Hosiery Manufacturers & Exporters Association (North Zone) said that, all over the world export of raw material is discouraged while import of raw material is encouraged.

“Unfortunately it is the opposite in our case and essential raw material for value addition is allowed to be exported which is being manipulated to create artificial shortage to fleece the value added textile sector,” he added.

Continuing, he said that textile has become the most important sector especially after grant of the GSP Plus status to Pakistan by EU but we failed to earn its dividends due to the artificial shortage and price hike in cotton yarn.

Value Added Textile Exporters’ apprised the guests that among manifold problems, the liquidity crunch was on the top which was hampering the pace of export efficiency in the wake of stuck up refunds of billions of rupees, which include sales tax, DLTL, customs rebate, withholding tax claims etc.

They lamented that previously this pro-business claiming government when came to power, exhausted 400 billion refund claims of exporters to pay off circular debts. They said they opposed such act at that time but to no avail. Today, the situation is worse than that time as neither refunds have been paid to exporters nor the menace of circular debts has been eliminated.

They was of the view that if the government had decided to pay all the refunds instead of circular debts, the situation would be different leading to exports enhancement and employment generation.