KARACHI: The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has praised the government for honouring their promise and commitment to facilitate five zero-rated export sectors, a statement said on Thursday.
PHMA Central Chairman Muhammad Jawed Bilwani pledged that upon receipt of payments against refunds and with the assurances of uninterrupted supply of gas and electricity, the sector will increase its exports to 20 percent in the next six months.
He welcomed the announcement to issue refund bonds (promissory notes) to exporters, on annual profit of 10 percent with a maturity period of three years.
He said these bonds should be transferable and redeemable after maturity, for clearance of backlog of Rs200 billion stuck-up, which would ensure liquidity for their businesses.
He expressed the hope that as demanded by the association, the government will clear the refunds in one go.
Bilwani said that the present government has considered the demands and proposals of PHMA for introducing separate tariffs of gas and electricity for the five zero-rated export sectors.
He requested the government to ensure uninterrupted power and gas supply to these zero-rated sectors.
The previous governments, including one headed by General Pervez Musharaf just gave assurances and hopes, but never adhered to their commitments and promises.
He anticipated that the government under the leadership of Prime Minister Imran Khan would continue to accord high priority to exports, and declare the sector as the lifeline for economic development.
He appreciated that the government would also reveal its plan to release payment against DDT claims under PM’s export package at the earliest.
He also appreciated abolishment of advance tax on filers on cash withdrawal and sale of banking instruments.
The government’s serious intention to address the issue of gas infrastructure development cess (GIDC) will support the industry and a settlement of its arrears and a reduction in overall rate of GIDC for all sectors will be announced soon in an effort to reduce the cost of doing business in the country.