Garments exports: Rs12 billion stuck up with the govt

Karachi, December 10, 2012 (PPI-OT): Refund claims to the tune of Rs12 billion of garments exporters have remained stuck with the government against DLT (drawbacks on local taxes and levies). In a SOS to the government high ups Chairman Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), Shaikh Mohammad Shafiq said that despite being the largest exporting industry and highest employment provider, the garment exporters are facing multiple issues with the government. First and foremost is the issue of pending DLTL claims jeopardizing the key initiatives of the Textile Policy (2009-14).

Currently about Rs12 billion of exporters claims are pending with the Ministry of Textile Industry but the Ministry has not issued a single penny despite an outlay of Rs7.5 billion approved in the Federal budget.

He also said that Ministry of Textile Industry is issuing temporary registration certificates with a validity of two months to the exporters which is creating hurdles in day to day running of business. Due to this exporters and manufacturers who are importing machinery have to submit a bank guarantee to the Custom Authorities, who refuse to accept these certificates being temporary.

The Ministry is also issuing arbitrary notices to the exporters such as the requirement of attested copies of Social Security and EOBI certificates which makes no sense because the ministry, EOBI and Social Security are all government departments who should at least coordinate their activities instead of asking exporters for verification. It has been pointed out by our various members that the Ministry refuses to accept verified copies of EOBI and SESSI challans.

Mr. Shafiq said that PRGMEA officials had meeting with member Sales Tax and Customs, Federal Board of Revenue in Islamabad recently. They were told by the Member Customs that all pending rebate claims till July 2012 have been cleared by concerned custom authorities all over Pakistan. While many of our members have not received their claims of 2009.

According to Shafiq instead of being provided security and resolving of energy crisis, we are being constantly bogged down in meaningless administrative procedures which divert our attention from our main activity – exports. The government should play a role of business facilitator instead of a regulator, he said.

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

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