Automated refund system to boost confidence, exports
The government should implement Rs180 billion export package without further delay to boost falling exports resulting in wide trade deficit, a business leader said on Monday.
The package textile and non-textile sectors was announced and notified in January but it has not been implemented since then that is disturbing, said Chairman of FPCCI Regional Committee on Industries Atif Ikram Sheikh.
He said that government should also consider devaluing rupee which is grossly overvalued, revise rates of energy and tackle scarcity of other important inputs.
Atif Ikram Sheikh said that delay in implementation of the package will damage the export sector which is already in a shamble.
He said that non-payment of refunds has also emerged as a serious issue damaging exports which should be resolved immediately by automating the whole system.
Automatic refunds would result in timely payments to business community which will initiate increased exports that are going down since years, he said.
The business leader said that automatic processing of the refund claims and transfer money in the account of exporter within seven days of export will give a new life to the external trade.
RTOs issue Refund Payment Orders in many cases but FBR remains reluctant to release cheques which is against the law of payment within one week that has pushed many exporters to the wall, he noted.
He said that liquidity problem has taken toll on export sector where many have no option but to get costly credit from market to fulfil commitments which is hitting their businesses very hard.