Looking out for itself: PRGMEA puts forth its demands
Wants zero-rated regime implemented, bonds issued immediately
PHOTO: AFP/FILE
LAHORE:
The value-added textile industry has urged the government to implement the zero-rated regime immediately, rather than wait for the federal budget announcement in July 2016, while asking authorities to issue bonds related to Finance Minister Ishaq Dar’s commitment to refund claims of exporters.
Pakistan Readymade Garments Manufacturers and Exporters’ Association (PRGMEA) Senior Vice Chairman Sohail A Sheikh said the zero-rated regime, which was announced by Prime Minister Nawaz Sharif, would be welcomed when it is implemented.
“We hope the government would fulfill its commitment this time,” he said. “A medicine is only useful before the (industry’s) collapse. The PM announced the zero-rated regime from July 2016, but I don’t see why it can’t be implemented today. Every passing day is crucial for the industry, especially at a time when exports have declined by 20%.”
PRGMEA chief coordinator Ijaz Khokhar said the government has announced several incentives verbally, but very few have been implemented.
Khokhar said the government has been claiming that it is actively working on issuing bonds to address the issue of pending refunds to taxpayers particularly exporters. “But it has not materialised,” said Khokhar.
“There is a trust deficit between the government and the business community which can be removed if the finance minister consults with all stakeholders in finalising the terms and conditions of the bonds. “We want soft-term bonds as this is exporters’ money and not borrowing. Textile exporters want their involvement in the whole process. “Additionally, for the long-term, the government must use the current interest rate so that exporters may use the bonds to borrow money from commercial banks.”
Meanwhile, Sheikh said that it was unfortunate that no official from the ministry had contacted the industry in looking for a solution to arrest the decline of exports.
Published in The Express Tribune, March 1st, 2016.
The value-added textile industry has urged the government to implement the zero-rated regime immediately, rather than wait for the federal budget announcement in July 2016, while asking authorities to issue bonds related to Finance Minister Ishaq Dar’s commitment to refund claims of exporters.
Pakistan Readymade Garments Manufacturers and Exporters’ Association (PRGMEA) Senior Vice Chairman Sohail A Sheikh said the zero-rated regime, which was announced by Prime Minister Nawaz Sharif, would be welcomed when it is implemented.
“We hope the government would fulfill its commitment this time,” he said. “A medicine is only useful before the (industry’s) collapse. The PM announced the zero-rated regime from July 2016, but I don’t see why it can’t be implemented today. Every passing day is crucial for the industry, especially at a time when exports have declined by 20%.”
PRGMEA chief coordinator Ijaz Khokhar said the government has announced several incentives verbally, but very few have been implemented.
Khokhar said the government has been claiming that it is actively working on issuing bonds to address the issue of pending refunds to taxpayers particularly exporters. “But it has not materialised,” said Khokhar.
“There is a trust deficit between the government and the business community which can be removed if the finance minister consults with all stakeholders in finalising the terms and conditions of the bonds. “We want soft-term bonds as this is exporters’ money and not borrowing. Textile exporters want their involvement in the whole process. “Additionally, for the long-term, the government must use the current interest rate so that exporters may use the bonds to borrow money from commercial banks.”
Meanwhile, Sheikh said that it was unfortunate that no official from the ministry had contacted the industry in looking for a solution to arrest the decline of exports.
Published in The Express Tribune, March 1st, 2016.