Ex­porters to move court against DLTL new cir­cu­lar

Pakistan Observer - - ECONOMY WATCH -

SALIM AHMED LAHORE—The ex­port-ori­ented in­dus­try of value-added tex­tile, who has been await­ing the re­fund claims of around Rs 4.6 bil­lion pend­ing for the last two years, has threat­ened to move the court if their funds were not re­leased im­me­di­ately. Pak­istan Ready­made Gar­ment Man­u­fac­tur­ers and Ex­porters As­so­ci­a­tion (PRGMEA) chief co­or­di­na­tor Ijaz Khokhar on Mon­day asked the fi­nance min­is­ter Ishaq Dar to per­son­ally in­ter­vene and play the role in early pro­cess­ing of ex­porters claims oth­er­wise they would ap­proach the courts against this il­log­i­cal cir­cu­lar of the State Bank of Pak­istan. He said that the State Bank of Pak­istan re­vised the cal­cu­la­tion method in DLTL Scheme at a time when full pay­ment is due and ex­porters have sub­mit­ted their fi­nal claims af­ter a lengthy process of pa­per­work.

“If the fi­nance min­istry does not in­ter­vene in the mat­ter the whole fund of Rs 4.6 bil­lion un­der DLTL Growth Scheme may be lapsed due to un­due de­lay in pay­ment. If SBP con­sid­ers this new method nec­es­sary it should be im­ple­mented from next fi­nan­cial year and the cen­tral bank should in­ti­mate the ex­porters in the be­gin­ning not at the end of the year,” he said. The PRGMEA chief co­or­di­na­tor Ijaz Khokhar said the As­so­ci­a­tion has also sent a let­ter to the Na­tional Stand­ing Com­mit­tee on Tex­tile chair­man Khawaja Ghu­lam Ra­sool Koreja to raise the is­sue of fi­nan­cial crunch faced by the ap­parel sec­tor. Koreja has fixed the meet­ing with PRGMEA to de­lib­er­ate all is­sues of tex­tile in­dus­try.

He said that the fi­nance min­is­ter Ishaq Dar had com­mit­ted in his bud­get 2015-16 speech for re­funds of claims of Draw­back of Lo­cal Taxes and Levy (DLTL) to the ex­porters but the re­cent cir­cu­lar of the SBP gives im­pres­sion that it would not seem to be ma­te­ri­al­ized like sev­eral other com­mit­ments of the govern­ment. Khokhar said that re­vi­sion in method of cal­cu­lat­ing DLTL claims will re­quire ad­di­tional pa­per work, fresh cer­tifi­cates/un­der­tak­ing and re-ver­i­fi­ca­tion of the claims al­ready ver­i­fied by the min­istry of tex­tiles. He said that it would de­lay the pro­cess­ing of claims and add to the fi­nan­cial bur­den on the value added sec­tor.

He said, “The claims al­ready sub­mit­ted un­der no­ti­fi­ca­tion dated 22 Oc­to­ber 2014, should be ac­cept­able as the ex­port re­al­iza­tion in ru­pee has been calculated on daily clos­ing rates pub­lished by the State Bank. We don’t see the need to sub­mit the claims, as all data per­tain­ing to ex­ports in for­eign cur­ren­cies is al­ready avail­able with the SBP. The con­ver­sion of claims in USD can eas­ily be done by the ver­i­fy­ing au­thor­ity at the time of ver­i­fi­ca­tion.”

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