Textile industry warns protest against falling exports

KARACHI: Value-added textile sector warned the government of mass protests across the country if the authorities could not arrest the declining exports.

Jawed Bilwani, chief coordinator of value-added textile sector at a press conference on Monday, said exports of the country hit 32-year low. The textile export is the major component of the total exports.

The fall in exports was attributed to serious liquidity issues due to pending refund, customs rebates and duty drawback on local taxes and levies claims.

“In order to overcome the liquidity crisis, the government had made commitments several times,” Bilwani said. 

He said the chairmen of five export sectors earlier agreed on a schedule of protest, including sit-ins before the offices of the Federal Board of Revenue. 

“However, this has been postponed for seven to 10 days after the announcement of the Prime Minister regarding discussions with stakeholders to save the exports,” he added.

The protests were scheduled for February 15 – March 3. “In case the government refuses the demands then new protests dates will be announced,” he added.

Bilwani said the prime minister had announced resumption of zero-rating from July 01, 2016. “However, the business community is not sure as past decisions of the government functionaries were not honoured,” he added.

The government should release stuck refunds to the tune of over Rs200 billion within 15 days and transfer cash in seven days in those cases where refund payment orders had been issued by tax authorities.

Bilwani said the exporters are also facing competitive issues due to high tariff of gas and electricity in the country.