The extreme liquidity crunch is negatively affecting the export potential of Pakistan. Liquidity crunch means that the cash resources are limited while the demand is high.
As per Pakistan Textile Exporters Association (PTEA), textile exporters are working hard to fulfill the government’s aim & vision of economic growth and stability. They have achieved 13.65% export growth but at a cost. For 8 months not even a single processed sales tax refund claim has been paid. Presently a huge number of sales tax RPOs are pending for payment.
The promised Prime Minister’s export package by the government has not been given to the textile exporters. Only 20% has been paid, thus the textile exporters have been deprived of this as well.
So this what Pakistan Textile Exporters Association have requested
To immediately release funds for the payment of ROPs of sales tax refund claims
Ensure the payment of all submitted claims of duty drawback of taxes under the Prime Minister’s Export Package
To achieve sustainable growth continue the DDT scheme for entire value chain of the textile industry in future.
About Pakistan Textile Export Association
“The Association was established in 1985 under the name of “All Pakistan Cloth Exporters Association as First Class Trade Body of Pakistan. To expand the scope of Association its name was changed from “All Pakistan Cloth Exporters Association” to “Pakistan Textile Exporters Association” in 2004 on all Pakistan Basis due to the new era of W.T.O. Membership of the Association has grown over the years with present strength more than 250. Members of the Association earn 3 Billion Dollars foreign exchange through export of textiles.40 Members of the Association have won Export Merit Trophy awards and 6 Members have earned the Honor of being declared businessmen of the Year.”