government refunds generated during production are timely refunded.
“Disruptive technologies are already playing havoc in various fields around the world,” he said, adding that exporters operating on sharp margins due to global competition are not in a position to bear the government inefficiencies and bureaucratic delays. In exports, procedures should move seamlessly from procurement, production to zero rated exports.
The All Pakistan Textile Mills Association, after meeting the minister, gave a seven point plan to revamp exports. In its letter dated July 15 2015, All Pakistan Textile Mills Association asked the minister to ensure that the exports are zero rated. It provided details of various taxes, duties, surcharges, levies and cess that an exporter has to pay during production process, which are not refunded. It asked a refund of five percent on exports of yarn, fabric and garments.
The second recommendation was that long term finance facility available to value added textile sector should also be extended to spinning and ginning as these two sectors badly need upgrade of technology.
Thirdly, it asked the government to provide export finance facility to entire value chain of textiles including spinning and weaving sectors.
The fourth recommendation of All Pakistan Textile Mills Association was to provide five percent export incentive to capture non-traditional markets through focus market and focus product schemes.
The fifth recommendation relates to very high power tariff imposed on the industry to cover inefficiencies of discos.
The All Pakistan Textile Mills Association has asked for OGRA recommended tariff of Rs9.5 per units instead of Rs14 per unit levied through surcharges and levies to cover loses of power distribution companies.
The letter points out that the entire industry is on independent feeders where the line loss and theft are almost zero.
The sixth suggestion was to revise yarn export from Pakistan to China at zero duty, as China levies 3.5 percent duty on import of yarn from both India – which has signed no Free Trade Agreement (FTA) with China - and Pakistan – which has signed a FTA. The seventh recommendation was related to strengthening domestic commerce.
It called for plugging all loopholes and malpractices that promote informal trade and result in dumping of foreign textiles in the country.