FAISALABAD – The textile exporters have criticised non-payment of rebate on customs duty during the last two years from the Faisalabad Dry Port model collectorate.
“Millions of rupees in rebate are stuck up creating severe liquidity crunch for the exporters who are already suffering continuous loadshedding of electricity and gas in the Punjab,” said Rana Arif Tauseef, the chairman of the Pakistan Textile Exporters Association.
He expressed grave concern over stuck-up amounts of exporters on account of customs rebate creating liquidity crunch.
“Pakistani exports are already under pressure due to prevailing economic, financial, industrial crises in the country as well as persistent law and order which are badly affecting the industrial and trade activities, productivity and employment,” he added. “The textile export sector is a major revenue generating sector to the tune of more than 13 billion dollar per year. Textile exports of the country are crumbling and the industry and business were squeezing due to non availability of funds,” he claimed. Held up amounts of exporters’ funds under the above head have created financial crunch for them and they are unable to increase their exports, it was contended.
This was evident from the 12% decline in textile exports in February of current fiscal export figures, he said. Overall growth in textile exports in the past eight months posted a negative growth of 7.5 per cent, as it touched USD 7.97 billion in July-February this year from USD 8.62 billion over the corresponding period last year, he added.
“This declining trend in export sector if not checked immediately would be dangerous for the national economy,” he warned.
“The export sector is life line of national economy and a very sensitive sector. Any disruption in the tempo or bottleneck in export facilitation would not only hurt the exports of the country but also have devastating impact on the industry causing productivity loss, job losses and industrial unrest.”
Mr Arif said that severe shortage of energy was already devastating the manufacturing and industrial sectors rendering export units dysfunctional and the situation is resulting in the loss of production. Emphasizing the importance of conducive industrial promotion and productivity augmentation conditions in the country, the PTEA chairman said to keep the industrial wheel running and providing maximum job employment, it was imperative to facilitate the optimum industrial activity.
He demanded that the government should bail out textile industry and exports from current crisis by removing hurdles and provision of necessary incentives to increase the textile exports of the country.
He demanded early release of blocked funds in customs rebate to enable the textile exporters to retain their hard won export markets at this time of tough competition in international markets.