KARACHI: Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Chairman Central Shaikh Mohammad Shafiq discussed the stuck up payments of PM package duty drawback of taxes order 2017-18 with Commerce Minister Muhammad Pervaiz Malik and Federal Secretary Commerce Mohammad Younus Dagha in a meeting held here at Islamabad on Friday.
While briefing the commerce minister and secretary, Shaikh Mohammad said that the textile industry has been the main driver of the economy for the last 50 years in terms of foreign currency earnings and has created countless jobs. He further pointed out that severe cash flow crunches have squeezed productivity resulting in reduced exports as billions of rupees are blocked.
On the contrary, commerce minister and secretary assured PRGMEA chairman that they are doing their best to overcome these issues and informed that the government has leased Rs5 billion to State Bank of Pakistan (SBP) for the payment of PM package scheme and will release another Rs6 Billion by the next week. They further informed that a special tariff for the textile sector is also under process, while discussing the high cost of doing business.
Claims made by the commerce minister regarding increased exports are false, Shaikh Mohammad said, adding “I have a different point of view; if we cross $25 billion in exports then we should say that we have truly increased exports.”
Shaikh Mohammad also enquired about the time barred cases whereas Commerce Secretary Mohammad Younus Dagha assured that they will also consider the same.
Meanwhile, Shaikh Mohammad also held a meeting with the Federal Minister for Ministry of Planning, Development and Reform Ahsan Iqbal at Islamabad here on Friday to discuss the establishment of 1000 industrial stitching units (ISUs) in Pakistan.
PRGMEA chairman said that setting up 1000 ISUs will directly encourage value addition which could potentially propel textile exports over and above $20 billion.
He concluded that we have full confidence in Ahsan Iqbal’s ability and expertise to uplift the economy, however, the government needs to provide a conducive environment by reducing cost of inputs to achieve export targets. He also demanded that a special strategy should be formulated to strengthen Pakistani brands in the international market as well as support local SMEs to develop their own brands locally as well as in the international market.
