Budget ‘disappoints’ exporters

By: News Desk      Published: 01:53 AM, 20 Jun, 2020
Budget ‘disappoints’ exporters

The five export-oriented manufacturer bodies have termed the federal budget 2020-21 disappointing, because it offers ‘nothing to run the industry in post-corona slowdown, especially of apparel sector, whose production orders of June and July have been stopped by the foreign buyers though the raw material and other purchases were made by the industrial units.

Sialkot-based exporters’ bodies dealing in value-added textiles, leather, surgical instruments and sports goods held an emergent meeting. The exporters said the federal budget disappointed the industrialists.

Without restoring zero-rated regime, the prime minister’s target of a good number of jobs won’t be achieved, the meeting was told. PRGMEA regional chairman Sohail A Sheikh and Chief Coordinator Ijaz Khokhar expressed serious concerns over severe liquidity crunch owing to non-payment by the international buyers for an indefinite period amidst worldwide lockdown due to pandemic, demanding the government to defer all advance taxes, besides restoring zero rating status of the exporting sector for at least one year.

There was a risk of millions workers rendering unemployed, Chief Coordinator Ijaz Khokhar warned, adding that the government’s budget had even no mention of exporters or textile industry. He observed that every government had always raised slogans that export sector is the backbone of the Pakistani economy but unfortunately they always made anti-export policies in Pakistan, he regretted.

Ijaz Khokhar said that we tried our level best to draw present governments’ attention again and again for the last two years and previous governments for many years to have some pro-export policies.

PRGMEA leader said that all the exporting bodies have now unanimously decided to hold a meeting with Prime Minister Imran Khan, intimating him that at this stage, if this facility is not restored, the businesses will collapse. In the meeting with the PM, exporters will appeal for amendment in the budget and restoration of zero-rating facility to five export-oriented sectors, as the withdrawal of this facility had a tremendous impact on the growth and development of the export industry.

Sohail A Sheikh said that payments of already shipped goods in Jan, Feb and March from foreign buyers have been held for indefinite period. Industry doesn’t have liquidity in hand to run the industry in coming months, so we are stressing on restoration of zero rating regime to run the wheel of industry, he observed.

Categories : Business