All Pakistan Textile Mills Association (APTMA) Chairman Tariq Saud said on Wednesday that the textile industry exports were yet under pressure in quantity terms due to a partial implementation of the 8-point textile industry package.
He said the high cost of doing business and an unrealistic value of the local currency had also played a role in this regard.
“No doubt, the textile industry has become partially operational with the availability of RLNG on a rate comparatively closer to the energy cost in region,” he said.
“But non-payment of Rs 200 billion outstanding refunds on account of sales tax, income tax, rebates and previous policy initiatives is yet proving a major stumbling block in smooth running of the industry,” he added. He said the textile industry was not able to utilise resources due to sustained losses earlier and a liquidity shortage now,” he added.
He said the industry was facing a liquidity crunch to produce exportable surplus while the government was reflecting the stuck up refund amounts in its revenue account which was not a fair practice.
He urged the government for immediate liquidation of refunds to the industry for overcoming serious liquidity crunches, complete withdrawal of gas infrastructure development cess (GIDC) from entire textile chain, payment of drawback of local taxes and levies (DLTL) at 5 per cent to remove incidentals of taxes, cess, levies and duties on all textile exports.