Page 13 - TEXtalks. September-October 2022

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Pakistan Textile Exporters

Association raise refund issue

Undue delay in payment of exporters’ sales tax refunds against approved Refund Payment Orders (RPOs) is
adversely impacting the export cycle as exporters’ liquidity have already taken a strong negative hit from the
adverse impacts of the global recession. Government must take immediate measures to ease off the
financial stress and gear up export growth.

In a statement, Patron-in-Chief Pakistan Textile Exporters Association, Khurram Mukhtar expressed serious
concerns over unnecessary delays in payment of exporters’ sales tax refunds. Appreciating the
announcement for payment of RPOs issued till the 2nd of October, he said that timely payment of sales tax
refunds is still a major issue. Despite all the commitments, FBR had failed to pay the sales tax refunds of
zero-rated sectors within 72 hours as payment of exporters’ refund claims have been stopped for over a
month, he described.

Referring the Rule 39F of the Sales Tax Act 2006, he said that sales tax refund claims for which approved
ERPOs are issued, will be paid within 72 hours but funds have been stopped for more than a month. The
textile industry is already under pressure in the current uncertain times, where export orders are dwindling
due to the global recession. Delay in payment of sales tax refunds will only make matters worse.
Government must take stock of the situation and make the sales tax refund payments as the textile sector
plays a pivotal role in the economy and accounts for over 60% of exports.

China’s garment and textile

exports surge

China’s garment and textile sector has managed to Month-on-month basis the exports in August 22 for
thwart Western sanctions by posting double digit apparel and accessories were lower at $18.48
growth in the first eight months of this year. The details billion against exports of 19.64 billion achieved in
of exports to different countries are not available but July 2022. This drop of $106 billion resulted in a
probably the surge came from new markets. decline of 5.60 percent.

The exports to the EU and other developed Textile exports posted a growth of 10.20 percent by
economies have declined resulting in an increase in clocking $102.27 during the first eight months of
exports from Vietnam, Cambodia, Bangladesh, and this year. Total textile and clothing exports reached
India to these economies. But the data released by $220.27 billion during this period. It is pertinent to
the Chinese Customs authorities show that the mention that Chinese companies have invested
garment and accessories exports during Jan-Aug heavily in the textile sectors of Bangladesh,
2022 period reached $118 billion, against exports of Vietnam, and Cambodia from where they export
$105.74 billion during the corresponding textiles and apparel to the rest of the world and
period of 2021. maintain their grip on the textile trade.

September/October 2022