Appreciating the prime minister for announcing the Rs180 billion package for enhancing exports, The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has urged the government to allocate at least Rs60 billion for the export-oriented industry in the upcoming budget 2017-18 under the prime minister’s Rs180 billion package.

They have also asked for the release of stuck tax refund claims of exporters, including the drawback of local taxes and levies scheme, customs and sales tax rebate, etc.

PRGMEA Central Chairman Ijaz Khokhar said that the decision is starting to show results as exports of the value-added textile industry are now showing an upward trend at a time when shipments of all other sectors continue to decline.

The package had given some boost to the country’s exports and if it was implemented properly and issues of liquidity crunch were addressed, the exports could be enhanced further.

Incentives will not be effective until the prime minister takes ownership of exports as policy implementation is not seen anywhere.

The chairman suggested appointing a full-time minister for textile industry as early as possible so that he could play a proactive role.

The government is also urged to introduce a liberal import policy for raw material of export goods like duty-free import of fabrics and accessories, which were not being manufactured in Pakistan.

He appealed to the government to take steps to discourage exports of raw material for the sake of finished clothing products in domestic and export markets.

At the same time, raw material exports must be disincentivised as they take jobs away from their country and create them in competing countries where the raw material is exported.