PTEA demands supplementary grant for payment of textile policy incentives

FAISALABAD: Pakistan Textile Exporters Association (PTEA) Monday demanded supplementary grant for payment of incentives under textile policies 2009-14 and 2014-19.

PTEA Chairman Khurram Mukhtar lauded the government's move for liquidation of outstanding refunds through promissory notes; but expressed concern over long outstanding liquidity under textile policy incentive schemes, said a statement issued here.

He claimed that inadequate liquidation of refunds would result in failure of getting desired results as huge amounts of exporters were still stuck against textile policy incentive scheme.

Giving details, he said that exporters' claims of Rs 10,300 million were outstanding against export finance markup support, Rs 1500 million against Markup Rate Support, Rs 19,405 million against Technology Up-gradation Fund, Rs 434 million against Reimbursement of EOBI & Social Security contribution of women and handicapped employees of textile industry whereas Rs 2500 million were outstanding against Drawback of Taxes & Levies (DLTL) 2009-11.

Moreover, Rs 10 billion were outstanding on account of income tax; whereas Rs 10 billion was pending against income tax credit u/s 65B & 65E. With huge shortage of funds, textile industry was unable to tap its potential in accordance with capacity.

The government should release supplementary grant for payment of textile policy incentive claims to get maximum industrial growth and significant increase in exports, he said.

Appreciating government's revolutionary initiatives to provide an enabling environment to the textile export industry, he hoped that supply of energy inputs at subsidized rates, liquidation of refunds through promissory notes and withdrawal of sales tax and custom duty on cotton import would act as a driving force towards an economically stable and prosperous Pakistan.

This is the right time to strike the textile industry as Pakistan is all set to accelerate its economic growth, he added.

He demanded payment of incentives under textile policies 2009-14 and 2014-19 with release of supplementary grant or through promissory notes as a major portion of working capital had been blocked in that respect.

Terming the decreasing trade deficit as good sign for economy, he referred the latest export figures revealed by the Pakistan Bureau of statistics that a 5.07% negative growth in trade balance is witnessed in first half of current fiscal against the same period of outgoing fiscal year.

Pining high hopes, he said the government's progressive initiatives had put the trade and industry on the track.