Woven garment exporters are facing acute liquidity crunch, as payment of billions of rupees is stuck up with the government departments on account of rebate, customs drawback and sales tax refunds, said Chairman Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) North Zone, Mubashar Naseer.
He said it is becoming financially unviable for a large number of woven garment exporters to survive amidst severe financial pressure. He further added that rupees 23.42 billion are stuck up as claims under the Duty Drawback of Local Taxes & Levies (DLTL) Scheme.
He said both the customs drawback and sales tax are supposed to be computerised and released automatically as per schedule. However, no payment of stuck up claims has been made by the concerned departments so far, he added.
According to Chairman PRGMEA, the indifferent attitude of government policymakers is worrisome for the exporters, who are already exposed to severe energy shortage in the country. He said their delegations made presentations to the respective authorities time and again but to no avail. He urged the government to ensure release of stuck up funds of the woven garment industry without any further delay to keep its growth momentum intact.
It may be noted that the woven garment exports have registered about 40 percent growth during 2010-11, while doubling the average unit price, excessively utilising expensive fabrics in different weights and employing 30 percent of total 3.5 million workforce of the textile industry value chain.