PHMA member exporters undergoing crisis-like situation

KARACHI (June 08 2010): A large number of PHMA member exporters are undergoing a severe crisis-like situation just because huge amount of their liquidity is blocked in the outstanding Claims of Drawback of Local Taxes and Levies against which they have not yet received the payment from State Bank of Pakistan (SBP).

"I am really bewildered and at a loss to understand why SBP is holding back huge amount of payments to the exporters?" lamented M. Jawed Bilwani, Chief Co-ordinator, PHMA and Chairman Pakistan Apparel Forum. He said that these are indeed most difficult and crucial times when the Value Added Textile exporters are fighting for their survival in the global market against heavy odds.

Due to stiff competition from neighbouring competing countries, lack of duty free access in EU and US, most adverse factors in the country like frequent loadshedding, high utility rates, help up custom rebate and sales tax refund claims, non-availability of cotton yarn with its skyrocketing prices (almost double prices), deteriorating law and order scenario this undue delay and holding up of the genuine claims of the Value Added Textile exporters by SBP is proving to be another nail in the coffin being prepared for this ailing and burdened export sector.-PR