The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has called for steps to promote industrialisation and enhance exports in its budget proposals for 2021-22.
PRGMEA Vice Chairman Adeeb Iqbal urged the government to make the next budget business-friendly, lower the cost of production, allow early refunds and relax import policy for industrial raw material.
He emphasised that the GSP Plus status is a golden opportunity, which exporters could exploit to meet the export target. “The value-added textile sector has been the main driver of the economy for the last 50 years in terms of foreign currency earnings and jobs creation,” he added.
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In its budget recommendations, PRGMEA sought a revival of statutory regulatory order (SRO) 1125 in its true shape, reintroducing the system of no payment no refund of sales tax for the five export-oriented sectors of textile, leather, carpets, surgical and sports goods for a year.
“All stuck up claims of exporters’ customs rebates and sales tax rebates should be released,” the association said.
“Apparel industry should be allowed to import fabric under the SRO 492 scheme instead of the Duty and Tax Remission Scheme (DTRE) as the country’s weaving industry is unable to fulfil the demands of fashion wear.”
Published in The Express Tribune, March 28th, 2021.
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