EU benefits to Pakistan textile industry virtually nullified, says PHMA chairman

Stakeholders of various textile and value added products associations urged the Pakistan government to release funds to disburse duty drawback to exporters, against realisation of export proceeds. They also urged the government to also release funds to refund sales tax, against the already issued RPOs, and save the sector from a liquidity crisis.

These demands were put up at a joint press conference of various textile associations including All Pakistan Textile Mills Association (APTMA), Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) and Towel Manufacturers Association (TMA).

"Benefit of GSP+ from the European Union has been virtually nullified due to the Pakistan textile sector losing its competiveness in global markets," PHMA chairman Adil Butt added. "The declining euro has hit the exporters hard and if the funds are released, it will provide succour to the textile export industry."

"Refund of drawback on exports should be processed immediately as the amount to be disbursed is estimated at Rs 30 billion," APTMA chairman Aamir Fayyaz said.