FAISALABAD -  The Pakistan Textile Exporters Association (PTEA) has demanded immediate payment of stuck up liquidity in refund cycle, as an extreme cash flow crunch is causing a major dent to country's exports.

In a statement here on Thursday, Ajmal Farooq, chairman, and Muhammad Naeem, vice chairman of the Pakistan Textile Exporters Association, expressed grave concern over undue delay in payment of exporters’ refunds. Textile exporters are deprived of liquidity and under such financial stress achieving target to boost the exports appears to be a herculean task, they said. A severe cash flow crunch is gradually eroding the biggest job providing textile export sector. Consequently, a sizeable textile capacity has been severely impaired and textile exports, both in quantity and value terms, have declined across the value chain. The government should set its priorities right and accord a preferential treatment to boost the exports and generate industrial activities. They stressed the need to reform the tax system and make it export and trade friendly.

PTEA Chairman Ajmal Farooq appreciated the Prime Minister's trade enhancement initiatives and called for budget allocation for incentives in order to reap the benefits of the package. He said that due to short releases of funds half of the incentives of Textile Policy (2009-14) were yet to be disbursed.

Pointing out the disparity with Punjab industries on gas prices, he said the textile industry in Punjab was using costly RLNG whereas industries in other provinces were using system gas. He called for gas supply to industries on equal prices.

The PTEA urged the government to take stock of the situation and boost the exports of the country by restoring viability of textile industry through immediate release of stuck up refunds.