Lahore: (Parliament Times) (PR) Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has said the government’s right decision of removing 5% Regulatory Duty on import of cotton yarn will accelerate value-added garment exports as the country’s exports have started showing recovery from the corona pandemic crisis, reporting a positive growth for the third consecutive month in Nov to $2.16 billion, up 7.67%.
PRGMEA vice chairman Adeeb Iqbal Sheikh, referring to the recent data of the Pakistan Bureau of Statistics for the first four months of the current financial year, stated that the textile and clothing export shipments are back on growth path both in terms of quantity and dollar value.
He said that the increase in exports is mainly driven by sizeable growth in proceeds from value-added textile commodities. Exports in the new fiscal year started on a positive note but witnessed a steep decline of 19% in Aug 2020 before rebounding in Sept, Oct and Nov 2020.
PRGMEA regional chairman hailed the efforts of Adviser to PM on Commerce and Investment Abdul Razak Dawood to convince the government for accepting the genuine demand of the value-added garment sector for removal of RD. He observed the decision to exempt cotton import from RD would, of course, deprive the government of a source of revenue and have certain budgetary implications but is timely and very much needed at this juncture. He said that the garment sector in country’s local market was facing shortage of basic raw material, which might have led to a drastic decline in overall textile exports, hoping the situation will improve now after this decision.
He said that with a view to promote exports of textile products, the Ministry of Commerce released Rs1.78 billion for the textiles sector under Drawback of Local Taxes and Levies (DLTL) scheme, which will resolve the liquidity issues of our exporters and enable them to enhance exports.
He stressed the need for revival of SRO 1125, reintroducing the system of ‘No Payment No Refund’ of Sales Tax for the five export-oriented sectors. He said that economic scenario has totally changed due to coronavirus pandemic and its impact on industrial sector is now visible in the country, he said. So, the revival of zero rated regime was the only remedy for speedy growth in exports of the country, adding that government must announce previous system of zero-rating regime to sustain export sector of the country.