PTEA stresses for addressing challenges in export growth

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Staff Reporter

Faisalabad

Pakistan Textile Exporters Association (PTEA) has stressed to immediately address the challenges in export growth as issues like stuck up liquidity in refund regime, non-availability of subsidy on energy supplies and imposition of duties & taxes on inputs/raw materials have adversely impacted the textile exports and industry.
In a statement here on Wednesday, Chairman PTEA Khurram Mukhtar said that new tax regime have halted the textile export cycle as extreme cash flow crunch has squeezed the financial streams, non-availability of subsidy on energy supplies have increased the production cost, levy of Anti-Dumping duty on basic raw materials and withdrawal of exemptions of sales tax and FED on locally procured input goods have disrupted the supply chain and slowed down the export pace, he added.
Elaborating the situation, Khurram Mukhtar said that major part of working capital of textile exporters amounting to PKR 155 billion has been stuck in refund regime creating extreme financial stress. Cost of capital is more than the average profitability of textile sector, he lamented.