Staff Reporter
Karachi
The Textile Export Industry has been left in isolation without providing any remedy, in Federal Budget 2020-201, to combat against the “virus” of 17 percent Sales Tax which was created in FBR lab last year and its widespread has cause fatal injuries to textile exports by means liquidity crunch resulted in shape of stuck up refunds worth billions of rupees.
Genuine demands and proposals of Textile Export sector have gone deaf on the ears of Government’s Financial Managers who, seemingly, performing as the “obedient servants” of IMF rather Government. The Textile Exporters have expressed complete disappointment and dissatisfaction over Federal Budget 2020-21 terming it “beyond your understanding”.
This was stated by Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum & Chief Coordinator and Former Chairman, Pakistan Hosiery Manufacturers & Exporters Association in a post-budget statement to press and media.
He was of the view that the budget 2020-21 will only benefit the construction sector of the country, however textile sector which is the backbone of the economy and exports, the labor-intensive, also provide huge employment to the female workers and particularly to the lower class in the Garment units are deprived from the relief in this budget. Further, textile export industry will face another new challenge due to global 40 to 50 percent recession, where price war would be the name of Game as according to predictions by Economic Pandits across the globe market size would reduce by minimum 40% that means 40% surplus capacity for exporting countries resulting in to higher cost of manufacturing.
