Lahore: 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 today.
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.
PRGMEA chief said that the government and the financial institutions are more inclined towards
the large scale business set-ups and industrial units. He said that it is evident from the economic
development history of big economies around the world that the economic well-being and
strengthening has resulted from the progressive development of SME sector in their countries.
Keeping eyes on the economic future and building Pakistan as a nation of prosperous and
developed people, the business communities, economic scholars and different forums in Pakistan
has been voicing for the SME sector development.
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.
