FBR blamed for dismayed growth, reduced exports: PEW
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The Pakistan Economy Watch (PEW) on Sunday blamed FBR for choked growth and reduced exports which is taking toll on economy.
FBR continue to block export refunds to show improved collection in a bid to please IMF which is against national interests, it said.
The policy of FBR has left export sector reeling with lost competitiveness therefore government should consider abolishing refund system, said Dr. Murtaza Mughal, President PEW.
He said that exporters should be provided facility of zero rated regime as the withheld refunds continue to damage competitiveness of export sector.
Murtaza Mughal said that the continued fall in exports is threatening largest export earning sector of textiles which is also the largest employment provider afteragriculture.
Government has repeatedly announced paying stuck up refunds but to no avail as five percent money of exporters is withheld in refund process while thirty percent of working capital of textile sector is being held since years.
The running units in terxtile sector has scaled down their capacity by 30 percent and millers are forced to get costly loans from banks to keep their business running and honour commitments.
Delayed refunds has resulted in increased cost of doing business and unmet obligations damaging country’s reputation, he said, adding that the issue continue to erode country’s competitive edge in the international market.
Law of refund payment within forty-five days is being violated since long which has damaged the textile and other export sectors that will eat up foreign exchange reserves, he warned.
