Textile Policy schemes, incentives: Govt releases over Rs3bn to textile ministry

TAHIR AMIN

ISLAMABAD: The government on Thursday released over Rs3 billion to textile ministry for different schemes and incentives, announced in Textile Policy (2009-14), informed sources revealed to Business Recorder.

The amount was released against Drawbacks on Local Taxes and Levies (DLTL) and Rs17.5 million each against Employees Old-age Benefits Institution (EOBI) and Social Security, sources revealed.

With this the total release for the current fiscal year reached Rs5.3 billion against budgetary allocation of Rs7.5 billion while total release for the implementation of Textile Policy reached Rs31 billion during the last three years with more than Rs20 billion disbursed to the industry under various schemes.

The State Bank of Pakistan will release Rs3 billion against DLTL, while Textile Commissioner's Organization (TCO) will release Rs17.5 million each against EOBI and Social Security.

Sources said due to financial constraints, textile sector's pending liabilities against the government under different schemes announced in the Textile Policy swelled to over Rs14 billion. This includes Rs10 billion as DLTL. Some textile millers have already moved court against the government for outstanding liabilities.

The government made the EOBI and Social Security part of the Textile Policy and allowed its reimbursement to encourage employment of women in the textile industry and support handicapped employees in textile units registered with the ministry of textile.

Textile units were given time till January 15, 2012 to submit their EOBI and Social Security refund claims of the first eight quarters (from October 1, 2009 to September 30, 2011). Textile units were further warned that any textile unit which will be in contravention of the provisions of rule laid for the refund claims, through acts of omission or commission, files fraudulent or false claim would be liable to penalties under General Statistics Act No. LXIX of 1975, SRO 11(KE)/79 of TCO.

After complete verification of documents, the payment will start. The released amount will be disbursed only to registered textile units in the country, sources maintained.