Textile industry running short of working capital

Textile exporters claim that a major chunk of their working capital has been stuck in claims for tax and duty refund, which is jeopardising the country’s exports and hurting the national economy.

Pakistan Textile Exporters Association (PTEA) and Vice Chairman expressed concern over blocking of funds, saying the government was not releasing the money to clear the refund claims.

The tax drawback scheme was initiated to boost exports and the results were visible in the performance of exporters, they said in a statement. Total exports in 2017-18 rose to about US$ 13.4 billion from US$ 12.5 billion in the preceding year. Next year, exports climbed to US 15.0 billion, which they said clearly supported the argument that if the exporters were facilitated they would produce good results.

Describing exports as the lifeline for the economy as well as a very sensitive sector, the PTEA leaders said any disruption would lead to loss of productivity and jobs as well as industrial unrest.

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