The Pakistan Readymade Garments Manufacturers' and Exporters' Association (PRGMEA) has sought early discharge of export relating statements made by the government in recent past. It has also sought a direct intervention from the prime minister in this regard.
The Association leadership, including the Senior Vice Chairman Sohail A Sheikh and Chief Co-ordinator Ijaz A Khokhar, has demanded zero-rating regime announced by the Prime Minister forthwith and not from July 2016 besides issuance of bonds for the exporters as per the federal finance minister.
The Association said the government should honour the commitment and restore the exporters' confidence. "An undue delay is detrimental to the industry when it is has already lost 20 percent exports," said Ijaz. He lamented that several incentives announced verbally proved a lollypop for industry because of the lack of implementation. He further apprehended that the announcement of issuing bonds against the pending refunds might not be materialised like the textile package and cut in power tariff by Rs 3/unit.
The government had assured of releasing bonds within one week but nothing has happened despite lapsing a considerable period. A trust deficit has hampered the liaison between the government and business community which is needed to be removed, he suggested.
He said the Association needs soft-term bonds against the exporters' stuck up money. The value-added textile exporters want their full involvement in the whole working and procedure of bonds release. And for the long-term the government must include interest at prevailing rate because exporters, who are facing severe liquidity crunch, could borrow money from banks on collateral of bonds, Khokhar demanded.
The Association senior vice chairman said no one from the government serious in stopping freefall of exports amidst GSP Plus status from the EU. He has urged the prime minister to intervene and take appropriate steps to save the export-oriented sectors. "Apart from the sales tax refunds, billions of rupees under the textile policy initiatives like DLTL are still held up for which funds should be released immediately," he added.