FAISALABAD
Textile exporters huge amounts stuck up in drawbacks of local taxes, sales tax, customs rebate, federal excise duty creating severe financial crunch should immediately be released, an industrialists' body asked Textile Industry Division Secretary Rukhsana Shah.
However, she said that Ministry of Commerce and Textile Industry is making an all-out effort to bring textile sector back on track by solving the industrialists' problems on priority basis. "All stake holders will be taken on board for exploitation of expected market access granted by the European Union," she said during her visit to Pakistan Textile Exporters Association office.
Addressing the textile manufacturers and exporters, she said that the government was fully aware of the problems being faced by the textile sector and working on a war footing to address the same. She hoped that GSP plus status would provide strong impetus for the value-added textile exports to European Union, generate significant economic activity in the country and help Pakistan build up its capacity to become a more effective and competitive actor in international economic relations.
An action plan has been finalized to get full advantage of expected GSP plus by the Textile Industry Division, she added. She said that the division would make efforts for immediate payment of pending refund claims of textile exporters as exporters are facing financial crunch owing to this problem.
Earlier, Sheikh Ilyas Mahmood, chairman of the Pakistan Textile Exporters Association, welcomed the secretary and apprised her of the main hurdles to overcome. If that amounts are released, exporters can deploy that capital towards expanding their businesses, which in turn will help Pakistan's export earnings grow. He termed high cost of production as the core issue of textile exporters. The exports are heavily burdened with federal and provincial taxes and levies, he added.
Mian Muhammad Latif, former chairman of PTEA, pointed out that bank mark-up rate should be capped at single digit figure to enable the exports and industry to attain competitiveness in international market. He stressed need for diversification of export products and export destinations. Pakistani textile exports have been traditionally concentrating on European and American markets and had built good reputation. Now it is need of the hour to explore new markets through expressive marketing.
Later, she visited Pakistan Textile Testing Foundation Lab. Muhammad Yousaf, chairman of PTTF, apprised her of the core functions of PTTF lab. He requested the secretary for grant of funds for expansion of the lab.