Government Urged To Lend A Helping Hand To Textile Industry
Extreme cash flow crunch has squeezed the financial streams and breading the liquidity jerks. Exports are falling consistently both in value and quantities; Government’s immediate intervention is solicited to check the drastic downfall in exports by immediately releasing the outstanding refunds of textile exporters across the board.
Commenting over the prevailing situation, Chairman Pakistan Textile Exporters Association Asghar Ali termed severe liquidity crunch as major cause of export decline.
He appealed the government to rescue the ailing textile industry as extreme cash flow crunch is hampering the export growth and adversely impacting the industry.
There is a capital blockage for textile exporters as their major capital remain stuck-up in sales tax, custom duty drawback and income tax refund cycle, causing a major dent to textile exports. Criticising the current refund regime, he informed that refunds of exports made 12 months earlier are still unpaid. This is having adverse impact on the employment and the economy of the country.
Lack of basic working capital has been a cause of serious concern for exports and a major setback to industry.
He appreciated the announcement of payment of refund claims up to Rs 5 million and termed it as a positive development; however it will not resolve the liquidity issues of major manufacturers-cum-exporters, each of whom has got stuck up hefty outstanding amounts.
He said that under current refund regime, affected claimants are not in a position to utilise liquidity, which they utilise four times in a year for manufacturing and exporting of consignments.
Finance is imperative to run the wheel of industry but without this, no one could even think to run industry. Government should set its priorities right and accord preferential treatment to boost the exports and generate industrial activities.
PTEA’s Group Leader Ahmad Kamal said that textile exports are crumbling and the industry and business are squeezing due to non-availability of funds.
The government should bail out textile industry and exports from the crisis by removing hurdles and providing of necessary incentives to increase the exports. He demanded immediate release of blocked refunds to enable the textile exporters retain their hard earned export markets at this time of tough competition.
PTEA demanded the government to bail out textile industry and exports from financial crisis by removing hurdles and provision of necessary incentives to increase the textile exports of the country.
They demanded immediate release of blocked funds in refund regime without any discrimination of Rs 5 million or above enabling them to retain their hard earned export markets at this time of tough competition in international markets