Pakistan Hosiery Manufacturers Association (PHMA) recently stated that value-added textile export industry had rejected the federal budget for 2020-21, terming it “one-sided and unrealistic” without any relief for the textile industry, which was the backbone of the economy and exports.

The association was of the view that the textile industry had been completely ignored and deprived of relief in the federal budget, which purportedly had been made on directives of the International Monetary Fund (IMF).

It said the imposition of 17 per cent sales tax in the previous budget had brought a disastrous impact on the textile industry and its exports as well as caused liquidity crunch due to stuck refunds worth billions of rupees. Value-added textile exporters have expressed sheer disappointment and have demanded that the government review and restore the zero-rated regime for the five major export sectors as a lifeline for the economy.

The exporters urged the government to reconsider restoring the zero-rating facility or slash general sales tax from 17 per cent to 4 per cent.