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Wednesday, June 15, 2011

Textile policy 2009-10 - Allocation of funds

Date: AUG 03, 2010

Our Ref. No. Exp/PDMEA/0209

The Secretary

Ministry of Textile Industry

Government of Pakistan

Islamabad

Sub: Textile policy 2009-10 - Allocation of funds

Dear Sir:

With refer to the much appreciated textile policy 2009-2010 in which subsidies like Drawback of Local Taxes and Levies and Mark up rate subsidy @ 2.5% was announced to facilitate the exporter and increase the export of Pakistan.

The said policy however, has not been implemented in its true spirit as the fund for reimbursement of the above subsidies has not been allocated to the State Bank of Pakistan by Ministry of Textile Industry on timely basis resulting in accumulation of large amount of Drawback cases.

Further refer to Ministry of Textile Notification No 3(2) TID/09-P-I dated September 1, 2009, regarding mark-up support of 2.5% to the exporter of textile industry on Export Refinance effective from 1st September 2009 payable on six-monthly basis, the first installment has been paid to the eligible borrowers to the extent of 60% of total amount worked for six months period from 01-09-2009 to 28-02-2010. The remaining amount of 40% subsidy will be provided upon receipt of funds from Ministry of Finance as and when received. Also note that several cases credited by commercial banks under this subsidy were also reversed on the directives of State Bank of Pakistan due to insufficient funds allocation of this subsidy amount.

We therefore humbly request that sufficient funds allocation be made against these subsidies as this will give some relief to export-based industries, & definitely help them come out of the financial crisis and enhance exports.

Thanking you,

Yours faithfully,

ASIF RIAZ

Chairman

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