Pakistan Textile Exporters Association (PTEA) has urged the federal government for timely refund disbursements and the implementation of zero-rated GST on energy bills for export industries.
In a statement on Thursday, Khurram Mukhtar, the Patron-in-Chief of PTEA, highlighted the importance of the large-scale manufacturing sector, which accounts for a significant portion of the country’s GDP.
The PTEA has urged immediate structural policy initiatives to revive the economy and stimulate economic growth. The association has identified several key factors hindering Pakistan’s progress, including rising debts, tax issues, underperforming large-scale manufacturing, and high energy costs.
Mukhtar expressed concern over the negative growth experienced by this sector, particularly in light of existing challenges such as high inflation, a growing current account deficit.
He called on the government to address these issues and save the industrial sector from further decline. He emphasized the need to negotiate sustainable energy tariffs with the International Monetary Fund (IMF) and rationalize cross subsidies on industrial energy tariffs to support growth. Just raising energy tariffs is not going to work, strict enforcement is required to reduce T&D losses and full bills recovery. Current hike in gas and electricity tariffs is disastrous for the economy and lacks any wisdom, he added.
Mukhtar also highlighted the impact of liquidity issues on export production, stating that delayed refund disbursements are causing severe financial hardship for exporters. He urged for timely refund disbursements and the implementation of zero-rated GST on energy bills for export industries. Additionally, he stressed the importance of ensuring easy access to working capital for the industrial sector to promote industrialization and create job opportunities.
