In a recent letter to the Government of Pakistan, Council of All Pakistan Textile Associations (CAPTA) has rejected the Government’s consideration of custom rebate and cash subsidies, fearing the move would further hurt the exporters. Instead of cash incentives, CAPTA has urged the Government to help reduce the input cost, which is a more effective way to provide financial relief to the export sector.
The letter questions the move of the Government by suggesting it “to reconsider its proposition since such a move in the past has proven futile for the entire textile sector and would only help the unscrupulous elements”. CAPTA demanded the Government to appoint a Textile Minister who will pave the way for the Government to scale down the manufacturing costs including gas and electricity rates for the export sector, especially in Karachi which should be at par with rates that of other cities in the country.
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CAPTA further demands that the Government should decide a fixed percentage of sales on the packing material and also suggested the Government to spend Rs. 26 billion funds on the textile sector’s growth, which it collects through Export Development Surcharge of 0.25 per cent by deducting from export proceeds of the exporters.