Textile sector louds Govt relief measures

Karachi, April 04, 2020: The Textile Manufacturers & Exporters Associations laud the relief provided by the Government under State Bank of Pakistan Refinance Scheme to dampen the effects of COVID-19 which will help and benefit the industries who are availing such refinancing in terms of the continued liquidity and flexible credit borrowing.

Downward revision of interest rate is also welcomed by the industries particularly the SMEs. The prompt and proactive measures offered by State Bank of Pakistan to the exporters will address their liquidity problems to some extent and shall ease down the financial problems.

Textile Export Industries also appreciated the role of State Bank of Pakistan in prompt disbursement of funds for Duty Drawback of Taxes (DDT) and Drawback of Local Taxes & Levies (DLTL) released by Ministry of Commerce to ease the liquidity of textile exporters.

The exporters are further anticipating that State Bank should also favourably consider and clear the minor objections of pending DDT & DLTL claims of exporters. This was stated by Muhammad Zubair Motiwala, Chairman, Council of All Pakistan Textile Associations.

State Bank of Pakistan decision to allow relaxation to financing in both in conventional and Shariah compliant schemes Long Term Financing Facility (LTFF),  Refinance Facility for Modernization of SMEs, Refinance and Credit Guarantee Scheme for Women Entrepreneurs,  Refinance Scheme for Working Capital Financing of Small Enterprises and Low-End Medium Enterprises, Small Enterprise (SE) Financing and Credit Guarantee Scheme for Special Persons is welcomed by the Industries which will be beneficial for those exporters and industries availing the said facilities.

Zubair Motiwala, Chairman, Council of All Pakistan Textile Associations earnestly demanded that those refund cases which are pending because of the IT related problems of FBR should be resolved on urgent basis.

He also welcomed the announcement of Dr Hafeez Shaikh, Advisor to Prime Minister on Finance & Revenue on 2nd April, 2020 of deferring the gas and electric bills for a period of next three months as this would definitely benefit the industries in this scenario of acute financial Crisis.

However, Notification of the same has not been issued yet. Therefore, he requested to the Government for issuance of Notification at earliest as Power & Gas Distribution Companies will only comply after issuance of proper Notification.

Motiwala said that the Textile Manufacturers & Exporters hoped that the Government will continue the support the industries during the difficult times even after normalization of current situation for complete recovery out of this worst ever crisis in the global history.

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