The Refund Problem Of Pakistan Textile Exporters Will Be Solved.

Pakistan's commerce minister, Khurram Dastgir Khan, has informed the national assembly (NA) that the government will issue 5 million rebate to exporters from next month, Pakistan News reported.

He said,

The problem of refund will soon be resolved. According to the textile policy, the textile department will pay 2 billion 500 million rupees to exporters.

The minister said

The added value can greatly increase export earnings.

Pakistan exports 12 million 100 thousand metres of cloth in the current fiscal year, he added.

The tax rebate is a thorny problem.

And garment exporters complain that the delay in refund has adverse effects on their business, and has repeatedly asked the government to solve this problem.

Dastgir said the government wants to try to obtain better market access for local enterprises in the international market through free trade agreements and preferential trade agreements with different countries.

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Recently, after talks between the finance minister of Pakistan and the chairman of the Pakistan textile mill Association (APTMA), it announced that since November 1, 2015, 10% tariffs have been imposed on imported cotton yarns, grey fabrics and processed fabrics.

At the same time, the ginning and textile industries will receive long-term financing, and export financing interest rates will be reduced by 100 basis points.

In addition, Pakistan will set up a supervisory committee composed of representatives of the textile industry and federal members to inspect and crack down on smuggling.

Pakistan's finance minister said that as of May 31st, the Pakistan government had arranged a 22 billion rupee fund to support the domestic textile industry, with a textile rebate of 2 billion rupees.

According to Pakistan's prime minister's plan, cotton farmers will receive a subsidy of 5000 rupees / acres to raise cotton production.

APTMA Association members include 80% of the country's textile export enterprises, and APTMA chairman Tariq Saud appeals to support the government's decision that it can boost domestic textile industry.

"The yarn exported from Pakistan to India is subject to a tariff of up to 28%, while the tariff of our imported India yarn is only 5%. The import of cheap India yarn into Pakistan has caused serious losses to the textile industry and even to our national economy."

Although the interest groups of textile enterprises represented by APTMA are fully supported, the downstream enterprises are strongly against it.

The FCCI Conference on textile industry was held last week, attended by the Pakistan Knitting Industry Association (PHMA), Pakistan textile processing Association (APTPMA) and other downstream industry associations. The conference opposed high tariffs on imported yarns, and warned that if the relevant departments did not withdraw the decision, they would carry out a protest march.