Federal Minister of Commerce Khurram Dastgir Khan has assured textile exporters of full support in restoring the zero-rating sales tax regime and expeditious clearance of refund claims in order to give a boost to exports. “The textile sector is the bread winner for the country and the government is trying its best to facilitate it,” said the minister.
He made the remarks during a meeting with Pakistan Textile Exporters Association Chairman Sohail Pasha and a delegation of leading textile exporters, who met him to highlight the hurdles in the way of exports. They briefed the minister about the precarious position of Punjab’s textile units, saying the value-added textile industry was in a grip of severe crisis since more than a quarter of the total production capacity could not be utilised on account of energy crisis, lack of funds and high production cost.
Billions of rupees of textile exporters were blocked in sales tax and customs rebate and other schemes introduced in the textile policy for 2009-14, said the exporters, adding the zero-rating sales tax facility was intended to save them from the hassle of claiming refunds. They said Pakistan’s textile exports could soar to $25 billion if the government took the stakeholders on board and framed policies in consultation.
Published in The Express Tribune, May 31st, 2015.