Stuck up refunds sinking economy: PEW
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Falling exports to widen trade gap
The Pakistan Economy Watch (PEW) on Sunday said non-payment of refunds has resulted in falling exports which will widen the trade gap.
Stuck up refunds worth billions of rupees have inflicted harm upon exporter sector which calls for urgent action, it said.
Government has paid some sales tax refunds but majority of other refunds have not been paid which has left exporters in a lurch, said Dr. Murtaza Mughal, President PEW.
He said that in current scenario Pakistani products are retreating in the international market which is against the national interests. Dr. Murtaza Mughal said that authorities seems indifferent to the plight of exporters who were competing in tough environment with other nations.
He said that many textile mills have been closed despite GSP status while the situation of some other sectors like garments, leather etc. is not different.
He urged the Federal Board of Revenue (FBR) chairman to ensure early payment of stuck-up refund claims of the export-oriented sectors, which are facing severe hardships.
Exports are stagnant and export-oriented industry in a dire need of resources, delay in payment of refund claims adding to their miseries, he added.
He said that FBR should not hamper the growth of the most productive sectors by denying the exporters and manufacturers their right of refund of sales tax and income tax.
Delay in release of huge funds that runs into billions has triggered serious liquidity crunch for the exporters and manufacturers that might lead to closure of several industrial units which will have very damaging consequences, he warned.
