Excess Billing

August 17, 2010

Mr. Zahid Mumtaz

General Manager

Customer Relations

Sui Southern Gas Company Ltd

SSGC House St-4/B, Block-14

Sir Shah Suleman Road

Gulshan-e-Iqbal

Karachi Fax No. 9231500

Subject: Excess Billing

Ref: Customer No. --------------

Dear Mr Zahid Mumtaz,

Kindly be advised that our gas consumption in the month of July is ----- cu. mtrs compared to ------. mtrs in the month of June a decrease ------- cu. mtrs, but the decrease does not corresponds with the bill, reason being you have applied a higher GCV ----- compared to GCV ------- you have applied in the earlier months.

You are requested to kindly issue us the revised bill based on GCV of ------ before due date i.e. 20-Aug-2010. Your cooperation will be highly appreciated.

Thanks and regards

---------

WRONG ASSESMENT – LOWER SIDE OF DUTYDRAWBACK CLIAMS

04-OCT-10

Dear Members PDMEA

Subject: WRONG ASSESMENT – LOWER SIDE OF DUTYDRAWBACK CLIAMS

It is to bring in your kind notice that the duty draw back had notified by the Federal Board of Revenue vide schedule-XXXV of SRO-209(I)/2009 dated 05-03-2009 after comprehensive survey conducted of 3 numbers of Denim units against the application duly submitted by the Pakistan Denim Manufacturer and Exporters association. The rebate of rate has been increased & the comparison of old rebate rates and new rebate rate are as under:

OLD RATES VIDE SCHEDULE-1 NEW RATES VIDE SCHEDULE -XXXV

SR0-955(I)/2007 dated 17/09/2007 SRO-209(I)/2009 dated 05-03-2009

Denim Fabrics 0.71% of fob value 0.85% of fob value

Denim Garments 0.90% of fob value 1.35% of fob value

In the couple of month ago the Collectorate, PACCS has raised the objection that the Denim fabrics/Garment made from 100% cotton will be assessed vide schedule-1 of SRO-209 (in which rebate rate for fabric @ 0.71% of FOB value & Garment 0.90% of Fob value) instead of schedule-XXXV of SRO-209 as the exported products is 100% cotton fabrics & the lycra is not being used in the process. Whereas as per our view point, the Denim process is entirely different as compare to 100% cotton fabrics process due to the different dyes and chemicals used in the process. However the usage of Lycra is depend on the Buyers demand it may be used or not used. Whereas the Custom duty on import stage is 0% on lycra, therefore it is entirely irrelevant factor in the determination of duty draw back rates.

Accepting the lower duty drawback rates losses a million of Rupees for Export of Denim Fabric and Denim Garment, therefore we have already taking up the matter through a technical consultant on the subject issue with the Customs Care and Federal Board of Revenue for changing description of exported goods “Denim Fabrics and Denim Garments” with or without lycra, as accessories. which .

In this regard, we are looking for your valuable comments in the matter, please.

Yours faithfully,

Chairman

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