Pakistan Agriculture News

Associations’ role vital for PM package’s true implementation

LAHORE – The All Pakistan Textile Mills Association has opposed the ministry of textile’s move of eliminating associations’ role in disbursement of duty drawback under revised PM Package for exporters, urging the government to withdraw the decision taken unilaterally without consultation of the industry.

APTAM chairman Aamir Fayyaz, in a letter written to the Federal Textile and Commerce Minister Pervaiz Malik, said that the role of associations must be restored in the DDT Order 2017-18 in view of their contributory services in the past.

“We would like to draw your kind attention towards Ministry of Textile notification regarding “Duty Drawback of Taxes Order 2017-18”. To our utter astonishment, the role of association in the verification of documents has been omitted.”

APTMA chairman said that textile associations play their assigned role of certifying the authenticity of the information provided by their members exporting textile items pertaining to the documents of application for claims. Associations not only provide guidance to their members regarding online submission of the data correctly but also assist them to rectify their errors by giving them edit options. In addition to the above associations also verify the required documents as well as online data submitted on RDA Cell of the Ministry’s website.

“We would also like to point out that as per Para 3(2) (a) of the notification the concerned authorized dealer (bank) within two weeks would submit the claims filed by the exporting units to the Field Offices of State Bank of Pakistan – Banking Services Corporation (SBP-BSC) if found correct but there is no clarification given in the notification regarding those claims found incorrect. The incorrect claim, if found at any stage, may be given a preference to correct and resubmit the claim on immediate basis to avoid further delay.”

He said that association can play active role in the completion of incorrect claims as quickly as possible to avoid delays.

“Keeping above in view, we request you to kindly instruct the Textile Division to incorporate the role of associations in the notification.”

It is to be noted that a large number of other industrial and exporters associations including the Pakistan Hosiery Manufacturers Association as well as the Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA), have also rejected the government’s move of eliminating associations role in disbursement of Duty Drawback under PM Package .

PHMA chairman Dr Khurram Anwar Khawaja, in a letter written to the Ministry of Textile Industry, said that after the new notification of textile ministry various agents have become active to approach the exporters for early release of claims without any queue from SBP, demanding certain percentage which is not possible but only with the connivance of the relevant department of the central bank.

Dr Khurram drew the attention of the ministry to the transparent and prudent role of trade bodies in implementation of export promotion initiatives, without allowing corruption or undue influence from any side in the past. On the other hand, a number of export promotion initiatives of the Ministry of Commerce have been mishandled by the officials of the government organizations, needless to mention their names, he added.

PRGMEA senior vice chairman Sheikh Luqman Amin in a letter to the ministry said that Aasociations have always played positive and active role in implementing government policies. He said that the track record of associations ‘ performance is evident that they successfully implemented Textile Quota management without a single incidence of error or misappropriation of any kind whereas prior to that, misappropriations of billions of rupees were detected in Quota Management. He pleaded that associations also checked few bogus shipments, curtailed fraudulent exercises of some exporters during DLTL management and cancelled the membership of such exporters.