The federal government has not addressed issues in the new budget regarding the uncountable problems hurting exporters, said Pakistan Textile Exporters Association (PTEA) Chairman Rana Arif Tauseef on Saturday.
While responding to budget measures, Tauseef said that three main issues had been identified namely energy crisis, immediate payment of duty drawbacks and exemption of withholding tax on exports. The government has touched all these issues but failed to identify a plan to eradicate them permanently, he said.
The budget is filled with inconsistencies, wrong allocation of funds and misplacement of priorities, he added. The architects of the budget have failed to realise the importance of major irritations besetting the economy and outline a strategy for their solutions, said Tauseef.
He said that PTEA had demanded Rs30 billion for clearing duty drawbacks but the government has allocated only Rs10 billion under the ‘Export Development Fund’ which is very disturbing. Instead of spending it to mitigate the sufferings of the textile sector this amount is doled out to Trade Development Authority for spending on foreign tours and exhibitions.
Tauseef also forewarned another imminent gas crisis and said that it would grip the country within next three months as government has taken no viable and practical solution to ensure constant supply of gas to this foreign exchange earning sector.
He also expressed his disappointment over insufficient allocation of Rs183 billion to overcome electricity load shedding and demanded that at least Rs500 billion should be injected in this sector to resolve the short fall.
Published in The Express Tribune, June 3rd, 2012.