Pakistan Readymade Garments Manufacturers and Exporters Association thanks Dar for announcing zero rated regimes for export oriented sectors
Karachi, August 23, 2016 (PPI-OT): Shaikh Mohammad Shafiq, central chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) in a statement said that PRGMEA’s members are very thankful to Prime Minister Nawaz Sharif, Finance Minister, Senator Mohammad Ishaq Dar for the announcement of the zero rated regimes – No Payment No Refund, for five export oriented sector i.e. value-added textile, carpet, surgical, sports goods and leather.
Shaikh Mohammad Shafiq, was present at the ceremony of distribute cheques of sales tax refunds to exporters and businessmen in a ceremony was held at the Prime Minister Secretariat, Islamabad. Payment of sales tax refunds made through issuance of cheques to exporters by the Prime Minister, whose RPOs were issued till 30th April 2016.
Despite certain hurdles, the business community engaged with Readymade garments was making strenuous efforts for enhancing the export in the larger national interests, he said.
Shafiq, continued to cite the high cost of doing business, saying that it has started hitting the textile industry severely, which is evident from the growing number of factory closures in the sector.
As cut-throat competition with countries, like Vietnam, Bangladesh and China, is giving tough time to Pakistan’s exporters. He also said that low cost of labour in Bangladesh goes in favor of employers. While the minimum wage is around $68 in Bangladesh, in Pakistan it is $125 and rising. Additionally the lower utilities cost further benefits the manufacturer, he pointed out. Our government gives 4% rebate on incremental basis while our competitors offer on the whole export, as Bangladesh. In this scenario that doesn’t have 10 % increment bereft of this incentives.
He said the government should take drastic steps for enhancing exports and addressing the problems of industrial sector on top priority basis.
For more information, contact:
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA)
3rd Floor, Plot No. 57-C, 24th Commercial Street,
Phase II (Ext), DHA, Karachi, Pakistan