Garment manufacturers seek Rs60b for export industry

Demand release of stuck tax refund claims, implementation of PM’s package

LAHORE: The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has urged the government to allocate at least Rs60 billion for the export-oriented industry in the upcoming budget 2017-18 under the prime minister’s Rs180 billion package.

They have also asked for the release of stuck tax refund claims of exporters, including the drawback of local taxes and levies scheme, customs and sales tax rebate, etc.

Appreciating the prime minister for announcing the Rs180 billion package for enhancing exports, PRGMEA Central Chairman Ijaz Khokhar said “the decision is starting to show results as exports of the value-added textile industry are now showing an upward trend at a time when shipments of all other sectors continue to decline.”

He said the package had given some boost to the country’s exports and if it was implemented properly and issues of liquidity crunch were addressed, the exports could be enhanced further.

“Incentives will not be effective until the prime minister takes ownership of exports as policy implementation is not seen anywhere,” he added.

The chairman suggested appointing a full-time minister for textile industry as early as possible so that he could play a proactive role.

He asked the government to introduce a liberal import policy for raw material of export goods like duty-free import of fabrics and accessories, which were not being manufactured in Pakistan.

He appealed to the government to take steps to discourage exports of raw material for the sake of finished clothing products in domestic and export markets.

“Emphasis must be put on job creation and value-added segments like apparel exports. At the same time, raw material exports must be disincentivised as they take jobs away from our country and create them in competing countries where the raw material is exported.”

PRGMEA Vice Chairman Jawwad Chaudhry said: “We will continue to lose export share in the global market and textile sector may face closure in the absence of consistency of policies and proper policy implementation.”

Published in The Express Tribune, May 23^rd, 2017.

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