Lahore, February 12, 2018 (PPI-OT): Pakistan Readymade Garments Manufacturers and Exporters Association has condemned the delaying tactics of the government in refund cases as the finance ministry has not released entire funds even under the previous Rs.180 billion package of former PM Nawaz Sharif to be processed from Jan 2017.
PRGMEA Senior Vice Chairman Sheikh Luqman Amin stated that finance ministry is ready to release funds neither for new revised PM Package for exporters for 2017-18 nor for earlier package announced in Jan 217 by ex-PM Nawaz Sharif.
Moreover, the central bank, instead of facilitating the exporters, is creating hurdles, using delaying tactics in refund cases as the central bank has been raising objections for more than six times on a single file in various refund cases, he said. He added that presently, almost 50% exporters have not received refunds under the previous package of former PM Nawaz Sharif to be implemented from Jan 2017 for exporters in an effort to give a cushion to the dwindling exports of the country.
Sheikh Luqman lamented that the State Bank treats the exporters like a criminal while studying their refund cases, instead of facilitating them by processing their cases speedily. He also expressed serious concern over the elimination of ‘Associations role’ in the new Notification No. 1(42-A) TID/17-TR-II, stating that procedure can never be implemented.
He said that ministry of textile had assured the exporters of simple procedure and paperless working, but in the new notification, the central bank has involved more paper working and lengthy process for disbursement of duty drawback claims under PM Package. The PRGMEA SVC said that instead of involving associations the exporters have been asked to directly submit their claims to the banks which have no technical staff to evaluate the claims.
The commercial bank/authorized dealers are violating the SBP clear instructions of forwarding refund cases within 14 days of receiving from the exporters due to unavailability of professional staff. He said that such notifications and circulars show that the finance ministry is in no mood to implement the PM Package at a time when the country suffers an all-time high trade deficit.
Sheikh Luqman Amin lamented that value-added textile exporters were battling hard for their survival in the global market in the face of severe competition with the regional countries. Terming funds blockage as the main cause of continuous drop in exports, he said that export industry was unable to tap its potential in accordance with capacity.
He said the government initiative, if implemented timely, will surely provide relief to the exporters who are presently facing severe liquidity crunch. Sheikh Luqman said that the role of Associations must be restored in the DDT Order 2017-18 if the government is serious about real implementation of PM Package with full transparency. He said that by eliminating the role of the Associations, the long delay will multiply manifolds as the banks do not have the required skills to scrutinize the claims solely.
For more information, contact:
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA)
3rd Floor, Plot No. 57-C, 24th Commercial Street,
Phase II (Ext), DHA, Karachi, Pakistan
Tel: +92-21-35890651-2
Fax: +92-21-35890653
Email: info@prgmea.org
Website: www.prgmea.org