The textile value-added sector asked the government to consider allowing a special five percent increased rate of margin in dollar exchange for both export proceeds and home remittances to boost business confidence.
Jawed Bilwani, Chief Coordinator, Value-Added Textile Forum who put forward this demand expressed dismay over the ever-increasing costs of all inputs. He said inflation has hit the roof, and the policy rate of 16 percent is unbearable. Even the export refinance rate has reached 11 percent he added. He pointed out that gas, the primary source of energy for the textile industry, is unavailable.
He said sales tax refunds are inordinately delayed.
The concession DLTL announced in the textile policy remains suspended.
Moreover, they regretted that the government has imposed severe restrictions on the import of raw materials and manufacturing, throwing the textile sector into the worst financial crisis.
He said that the foreign buyers are disturbed by allegations of opposition over a possible default by the opposition. The media reports that portray a bleak picture of the economy are also rattling foreign buyers.
He said exports are hostage to high costs and need facilitation like a 5 percent margin on exports. He appealed to the federal finance minister Ishaq Dar to address the genuine grievances of the value-added textile exporters.
