Pakistan’s textile industry faces high cost of doing business. About Rs 200 billion of refunds relating to sales tax, income tax, rebates and previous policy initiatives are yet to be paid. This is proving to be a major stumbling block in the smooth running of the industry.

The textile industry is not able to utilise resources due to sustained losses earlier and a liquidity shortage now. This is hindering the production of an exportable surplus.

The industry now wants refunds to be released on priority, the complete withdrawal of the Gas Infrastructure Development cess from the entire textile chain, payment of drawback of local taxes and levies at five percent to remove incidentals of taxes, cess, levies and duties on all textile exports. It wants a 15 per cent regulatory duty on imports of yarns and fabrics made from synthetics including polyester, viscose and acrylic, which have made serious inroads into domestic commerce.

The industry says the stuck up refund amounts are reflected in the revenue account, which is not a fair practice. It wants the eight-point textile industry package to be implemented in totality and not partially as is being done now. Also Pakistan’s currency is seen to be having an unrealistic value.