Karachi, November 07, 2019 (PPI-OT): We Towel Manufactures’ Association of Pakistan deeply concern with the Country’s deteriorating Economic situation with special reference to Exports which is going downward Day by Day. The main reason of declining Towel Exports is the huge blockade of exporters’ working capital under the Head of Sales Tax Refund due to which exporters are unable to Procure Material / Input for Manufacturing Goods meant for exports.
Presently Rs.25 Billion is Stucking up with the Govt. each month. Very recently F.B.R started releasing refund against Sales Tax for the Month of July 2019 but the beneficiary is very limited and majority of exporters is still looking towards F.B.R for their refund. While Rs.75 Billion against refund is lying with the F.B.R for the month of August and Exporters are in fix as there is no sign when their Sales Tax Refund will be made. Which was promised to return within 72 hours. Due to prevailing conditions exports of Towel during September reduced by 12% in comparison to August 2019.
We are afraid if such situation continues further it will lead to mass scale closure of Textile Industries including Towel which will ultimately affect Forex Reserves and massive un-employment in the country. Besides above old refund of Sales Tax is still pending so and so on that Bonds issued to exporters through C.D.C some time back it is just a piece of paper as it was hurriedly issued without framing proper Rules and Regulation.
Exporters fund are out of block under various Heads of Govt. policies, besides above i.e. Custom Duty Draw Back D.L.T.L D.D.T etc. These are the hurdles which are exporters are facing and due to which it is hurting exports. We urged to Govt. to realize the gravity of the situation and take measures before it is too late.
For more information, contact:
Towel Manufacturers’ Association of Pakistan
TMA House, 77-A, Block ‘A’,
Sindhi Muslim Cooperative Housing Society,
Karachi – 74400, Pakistan