Value-Added Textile Industry Welcomes Budget

Value-Added Textile Industry Welcomes Budget
The value-added textile industry has welcomed the budget, saying that the government has offered the best possible under the prevailing circumstances. Shehzad Azam Khan, Chairman Pakistan Knitwear and Sweater Exporters Association (PAKSEA), said the Finance Minister has offered what the value-added textile industry had demanded from him in the pre-budget negotiations.
“A reduction in the export refinance and introduction of zero-rating regime are wonderful steps,” he said. Speaking to Business Recorder, the Chief Co-ordinator of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Ijaz Khokhar said the introduction of zero-rating regime would be beneficial to the cottage industry of Sialkot, which was facing the problem of liquidity cash flow.
However, he termed the continuity of Drawback of Local Taxes and Levies (DLTL) as a joke, saying that the government should offer 4 percent DLTL to all export items to bring growth to the sector. Regarding the duty free import of machinery, he said, the government should offer duty free import of spare parts to make this offer more comprehensive and ensure modernisation of the value-added textile industry.
He has also welcomed reduction in the refinance rate to 3 percent. On refunds, he objected the announcement of paying back the refunds to only those carrying RPOs, saying that the government had stopped issuing RPOs over the last four months. Therefore, the government should announce payment of all stuck-up refunds by 31st August to resolve the liquidity issue.