PHMA seeks economic relief package from government

Pakistan Hosiery Manufacturers & Exporters Association (PHMA) on Friday sought an economic relief package from the government following the Covid-19 pandemic hitting the international trade badly.
Javed Bilwani, Chairman of the Pakistan Apparel Forum and Chief Coordinator, PHMA, expressed concerns over a demand reportedly from world buyers for local exporters-cum-manufacturers to slow down textile output following the virus spread across the world.
"Reportedly, buyers have also asked Pakistani textile exporters to slow down production. Hence, a sense of uncertainty and fear of cancellation of export orders prevails, which demands serious and immediate attention of the government for the sake of survival of the value added textile export sector and announce economic relief measures to protect the export industries," he said.
He said that the government should start "rescue and relief measures" for the export industries with immediate payments of sales tax refunds and restoration of Zero Rating Regime keeping in view the "grave global and national scenario".
Besides the government should make payments of customs rebate, DDT and DLTL, waive all types of mark-ups against refinancing availed by export industries, give extension in payment of utility bills, suspend arrears and late payments surcharge, bring interest rates to a single digit and announce waiver in payments of EOBI and SESSI and other taxes till normalization, he maintained.
He said that exporters have expressed concern that the delays in shipment will lead to piling-up of export inventory and may cause additional expenditures for storage until confirmation of the consignments. Industries, he said, which were required to export goods had been facing unavailability of containers due to their shortage.
"Non-payments against LCs of delayed shipment will multiply the financial pressure of exporters who are already facing severest ever liquidity crunch due to outstanding payments of billions of rupees of exporters in Sales Tax Refund, Custom Rebate, Withholding Tax, DDT and DLTL which have been withheld by the government," Bilwani said.
He said that governments the world over are providing relief packages in shape of cash subsidies, zero percent mark-up, exemptions of payments from taxes and utilities etc.
"Such relief measures are crucial otherwise the ailing export industries may face chaotic situation leading to bankruptcy, closure of industries, massive layoffs and precarious law and order situation," he added.