PRGMEA asks State Bank of Pakistan to disburse Export Package funds speedily : AsiaNet-Pakistan

PRGMEA asks State Bank of Pakistan to disburse Export Package funds speedily

June 25, 2018 | General Business News | Share:

Lahore, June 25, 2018 (PPI-OT): Pakistan Readymade Garments Manufacturers and Exporters Association has asked the Caretaker government to take care of the export sector, requesting for speedy implementation of Export Package, as the central bank is not disbursing the funds, already allocated and released by the government.

PRGMEA senior vice chairman Sheikh Luqman Amin pleaded if the allocated funds under the Export Package for the fiscal year 2017-18 are not disbursed before 30th June 2018 by the central bank the funds will be lapsed. He added that billions of rupees against the previous Drawback of Local Taxes and Levies are pending with government, causing liquidity problems to the exporters in keeping their export commitment, which must be released immediately to streamline cash flow.

He said that there is a big confusion in SBP regional offices regarding MBL (Master Bill of Lading) in DDT and DLTL Schemes, as MBL is being demanded only by some local offices of the SBP which is not being practiced in several other branches.

Referring to the Notification No. 1(42)TID/17-RDA, regarding “Duty Drawback of Taxes Order 2016-17” and “Duty Drawback of Local Taxes and Levies (DLTL Schemes)”, Sheikh Luqman said that it is clearly mentioned in the notification that claimant can enclose a copy of Bill of Lading /Master Airway Bill along with House bill of Lading/(FCR along with Master Bill of Lading / House Airways Bill (where applicable) / Original Truck Receipt.

He said that value-added textile exporters had several meetings with SBP and discussion with RDA Cell but they don’t issue any clear instructions to SBP to give any relief to exporters who are already facing a liquidity crunch. SBP raised the objection on several cases, forcing exporters to attach the MBL with claims though it is not compulsory. Only in case of any ambiguity in the claim the SBP can demand the MBL for verification otherwise B/L, issued in favour of the firm, should be acceptable,” he added.

He said that the SBP should clear the cases according to the Notifications. He said that the MBL is a sensitive and complex nature of a document that has the information of other exporters as well, so people hesitate to provide this information. “Such behaviour shows that bureaucracy is in no mood to implement the Export package at a time when the country suffers all time high trade deficit of $32.6 billion in FY17,” he noted.

“And with respect to DLTL Scheme it is clearly stated in the Notification that Applications containing discrepancies shall be returned by the State Bank of Pakistan to the authorized banks within thirty days from the date of submission of claims.”

But SBP is presently scrutinizing the cases after two years of submission and raising the unjustified objections, which is adversely damaging cash liquidity, he added. He said that value-added textile exporters are battling hard for their survival in the global market. He requested the ministry to look into the matter to give exporters an easy way for getting this oxygen support announced in the shape of Export package by the last government.

For more information, contact:
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA)
3rd Floor, Plot No. 57-C, 24th Commercial Street,
Phase II (Ext), DHA, Karachi, Pakistan
Tel: +92-21-35890651-2
Fax: +92-21-35890653
Email: info@prgmea.org
Website: www.prgmea.org

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Category: General Business News