PRGMEA launches an SOS appeal in the face of an acute financial crisis in the industry – Business & Finance
LAHORE: The Ready Made Garments Manufacturers & Exporters Association of Pakistan (PRGMEA) has issued a desperate SOS appeal amid the industry’s acute financial crisis amid delayed sales tax refunds, rising mark-up rate, soaring fuel and energy costs and worse power cuts, expressing fear of disruption of the entire export-oriented textile supply chain in the county.
In an appeal to the Prime Minister, Chief Justice of Pakistan, Chief of Army Staff, Ministry of Finance and Ministry of Commerce, PRGMEA Northern Zone Chairman Sheikh Luqman Amin said the situation had not improved at all despite various appeals to the departments concerned.
“We are now sending out an ‘SOS Appeal: The Garment Industry in the Midst of an Acute Financial Crisis and the Resulting Collapse of the Value-Added Textile Chain’, which requires a rapid response, as the country needs dollars and we are quite capable of doing it. We have a lot of orders to earn money, but we don’t have fair conditions to fulfill these orders due to the indifferent and ruthless attitude of the authorities,” he added.
Calling for swift and serious action to support the growth of garment exports, Sheikh Luqman Amin said the new textile policy is committed to supplying gas and electricity at competitive international prices, continuing tariff rationalization and stick to the policy. duty drawback on local taxes and duties.
He lamented that the previous textile policy also failed to achieve its goals, including increasing textile exports from $13 billion to $26 billion, doubling value added from $1 billion per million bales of cotton at $2 billion per million bales of cotton as well. than the creation of three million jobs in five years.
It is a good news that after the expiry of the last textile policy, the government came up with a new policy, including new objectives, incentives and recommendations, while all stakeholders were also considered before finalization. of the new policy, which was a good sign. for the economy and industry, but it must also be implemented, he demanded.
He expressed hope that Pakistan can achieve this goal provided local industry is facilitated by regionally competitive energy tariffs and a business-friendly environment.
PRGMEA North Zone Chairman Sheikh Luqman Amin urged to increase ease of doing business, reduce production costs, pay prepayments to solve cash shortage, relax import policy industrial raw materials and to equalize energy prices throughout the country.
He said all stalled claims, including DLTL, DDT, customs rebates and sales tax rebates, which have been pending for six months, should be released.
He expressed concern that the government has not been able to release sales tax refund claims on a regular basis because the amount of exporters’ cash has started to be blocked by the government due to a faulty system. and defective.
He asked the government to work on an accelerated plan to also solve the energy problems. Priority should be given to the export-oriented garment sector, which was the highest value-added link in the entire textile value chain. The PRGMEA leader called for exemptions from power cuts for exporting SMEs as the power crisis in Pakistan escalated and the overall power shortage worsened.
PRGMEA regional chief urged Prime Minister Shehbaz Sharif, Chief Justice of Pakistan Umar Ata Bandial, Army Chief of Staff General Qamar Javed Bajwa to intervene as it is in the interest and to direct the tax agency to remove bottlenecks in the new RBF refund payment system, as exporters are facing severe cash shortages due to the delay in paying refunds from the sales tax.
Copyright Business Recorder, 2022