FAISALABAD: The Pakistan Textile Exporters Association (PTEA) has urged the government to address the extreme cash flow crisis with immediate release of outstanding refund claims in order to give a fresh impetus to industrialisation and exports.
“Opportunities are emerging globally and the country’s textile industry has the infrastructure and potential to double its export volume and generate 2 million new jobs,” said PTEA Chairman Sohail Pasha in a statement.
Despite the deep crisis, he said, the textile industry had remained the most export-oriented sector in the economy over the past decade with 60% share in the country’s export revenues. “However, stagnating textile exports have been a consistent source of concern for the economy,” he cautioned.
Pasha lamented that challenges such as stuck liquidity, high prices of energy and imposition of duties and taxes on inputs/raw material were adversely impacting production, employment and exports.
Terming liquidity crunch as the core issue, he said the cash flow shortfall had squeezed financial streams as a major portion of exporters’ working capital, estimated at around Rs170 billion, had been stuck in the refund claims on account of sales tax, income tax, customs duty and textile policy incentives.
Published in The Express Tribune, October 11th, 2019.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.