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Friday March 29, 2024

Govt urged to take care of export sector

By Our Correspondent
June 26, 2018

LAHORE: Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) asked the caretaker government to take care of the export sector, requesting for speedy implementation of export package.

PRGMEA Senior Vice Chairman Sheikh Luqman Amin said the central bank is not disbursing the funds, already allocated and released by the government. If the allocated funds under the export package for the fiscal year 2017/18 are not disbursed before 30 June by the central bank the funds will be lapsed, he said. said billions of rupees against the previous drawback of local taxes and levies are pending with the government, causing liquidity problems to the exporters in keeping their export commitment, which must be released immediately to streamline cash flow.

He said there is a big confusion in the State Bank of Pakistan’s (SBP) regional offices regarding master bill of lading (MBL) in duty drawback of taxes (DDT) and drawback of local taxes and levies (DLTL) schemes, as MBL is being demanded by some local offices of the SBP, which is not being practiced in several other branches.

Referring to a notification regarding “Duty Drawback of Taxes Order 2016/17” and “Duty Drawback of Local Taxes and Levies,” Sheikh Luqman said it is clearly mentioned in the notification that the claimant can enclose a copy of bill of lading/master airway bill along with house bill of lading along with master bill of lading/house airways bill (where applicable)/original truck receipt.

He said value-added textile exporters had several meetings with the government officials but they don’t issue any clear instructions to SBP to give any relief to exporters who are already facing a liquidity crunch. SBP raised the objection on several cases, forcing exporters to attach the MBL with claims though it is not compulsory. “Only in case of any ambiguity in the claim, the SBP can demand the MBL for verification otherwise B/L, issued in favour of the firm, should be acceptable,” he added.