The Pakistan Readymade Garments Manufacturers and Exporters Association (NZ) Chairman Sohail A Sheikh has expressed his concern over the performance of the Federal Board of Revenue's newly-launched Fully Automated Sales Tax e-Refund (FASTER) System as the commitment of the government to release exporters' sales tax refunds within 72 hours has not been fulfilled yet, affecting SMEs severely.

"PRGMEA welcomes Prime Minister Imran Khan's directives to the Federal Board of Revenue to clear pending refunds of exporters, removing bottlenecks from the new refund payment system of the FBR," he said in a statement issued here on Monday.

PRGMEA NZ chairman asked the PM to also get his directives implemented on immediate basis and in their true spirit, as the exporters especially of SME sector, are facing a severe liquidity crunch due to delay in payment of sales tax refunds despite launch of new system by the FBR.

At a time when banks are already reluctant to finance small industrial units amidst tight monetary policy the exporters need more quick and speedy system of refunds payment of their own money.

Moreover, he added that the Small and Medium Enterprises sector in the country needs proper financial facilitation and friendly policies' support.

He urged commercial banks to improve access for the SME sector that contributes heavily to the country's GDP, generating employment on a large scale. Despite significantly contributing to the GDP, exports and employment generation, the financing percentage of SMEs remains pathetic in the overall financing to customers of various levels.

He said that timely payment of refund claims is still a major issue and needs resolution on high priority especially for the SME sector. He said that increase in exports of the country is a very important objective as far as improvement of economy of the country is concerned. He observed that it should be the utmost priority of the government to facilitate exporters of the SME sector in every possible way.