Exporters reject new process for rebate claims

Fear processing time for duty drawback will increase significantly

LAHORE: Different ministries as well as the central bank, instead of quick implementation of the prime minister’s export package, are constantly using delaying tactics, complained Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) on Thursday.

Senior Vice Chairman Sheikh Luqman Amin said the government was constantly creating frameworks involving lengthy procedures, complex methodologies and such conditions that could never be fulfilled.

Amin expressed concern over the elimination of associations’ role in the new notification about the revised procedure, which he said was not practicable and could not be implemented.



“Such notifications and circulars show that the bureaucracy is in no mood to implement the PM’s package, though the country suffered an all-time high trade deficit of $32.6 billion in FY17, jumping over 36% from the previous year.”

He pointed out that the Ministry of Textile had assured exporters of a simple procedure and paperless process, but in the new notification the central bank had included more paper work and a lengthy process for the disbursement of duty drawback claims under the PM package.

Instead of involving trade associations, “the exporters have been asked to directly submit their claims to banks which have no technical staff to evaluate the claims,” he said.



Earlier, the associations were assessing the claims to ensure authenticity of the documents which were verified by notified committee members of the associations.

He voiced fear that by eliminating the role of associations, the processing time of rebate claims would increase significantly as banks neither had the capacity nor the skills to scrutinise the claims.

Published in The Express Tribune, December 22^nd, 2017.

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