‘Textile sector continues facing losses'

PHMA chairman criticises government for delay in payment

LAHORE: Pakistan Hosiery Manufacturers Association (PHMA) Chairman Adil Butt said Saturday that textile exporters are being exposed to heavy financial losses as they passed on the benefit of cut in cost to international buyers immediately after the announcement of the government’s incentive package.

Butt expressed concern over the undue delay in refund payment to the exporters, stating that not even a single penny has been released to the export-oriented industry.



“Prime Minister Nawaz Sharif announced incentives worth Rs180 billion in a bid to boost Pakistan’s sagging exports, declaring 7% duty drawback rates for value-added textile exporters,” he said.

“The international buyers’ local representatives, who are fully aware of all government policies, demanded the cut in prices of our goods with the same ratio declared by the government. And we have to pass on this benefit to them to keep Pakistani goods competitive in the world market. But it is unfortunate that payment of duty drawback is being delayed constantly,” he added.

The chairman also said that the exporters will continue to suffer losses if the Federal Board of Revenue does not release funds, since they have already sold their items on 5-6% less margin.

“The value-added textile exporters will not meet their export commitments due to severe liquidity crunch which is a major hurdle for the industry at the moment,” he said.

Published in The Express Tribune, April 9^th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.