Budget allocation for textile sector about to lapse – Pakistan Readymade Garments Manufacturers and Exporters Association demands immediate release of Rs4.5 billion

Karachi: The textile sector has demanded of the government to immediately release allocated amount of the refund claims against Duty Drawback of Local Taxes and Levies (DLTL) before it get lapsed.

Central and Zonal Chairmen, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), Shehzad Salim and Atiq Kochra have pointed out that budgetary allocation for the year 2011-12 on account of DLTL to the textile sector is about to lapse as only Rs3 billion has been paid out to exporters against an allocation of Rs7.5 billion.

He further pointed out that approximately Rs20 billion of exporters DLTL claims are stuck-up with the government and the government is dragging its feet over payments while exporters are facing acute liquidity crunch due to decline in exports orders from EU and USA.

“Although the government makes tall claims for support to the main industrial sector of Pakistan but in fact no support is being provided” Shehzad said adding that. the government is holding back our dues of last two years which is a substantial amount and we not seeking anything extra, he said.

At first, only 14.68% of total amount was being reimbursed which was later enhanced to 28.32%, due to which administrative work of State Bank has increased substantially and they now require about 35 days clearing our payments. We, therefore feel that if the balance allocated amount of Rs. 4.5 billion is released not immediately, current allocation will lapse and the industry will again be compelled to beg for new allocation in the next budget.

On one hand we are being pushed to enhance our sagging exports in adverse market conditions while our rightful dues are being withheld, how can we be expected to finance our operations when we don’t have the required funds?, he added.

For more information, contact:
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA)
18-A Shaheen View Building, Block-VI, P.E.C.H.S.,
Shahra-e-Faisal
Karachi-75400, Pakistan
Tel: +9221 3454 9073, +9221 3454 7912
Fax: +9221 3453 9669
Email: info@prgmea.org
Web: www.prgmea.org

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