Govt pays Rs10bn in decade-old export refunds
ISLAMABAD: At a time when the country’s export proceeds are declining, the government has released Rs10 billion in payments against decade-long outstanding subsidies and textile upgradation claims, offering partial relief to exporters struggling with cash-flow constraints. The release of a bulk amount in one go comes as the textile sector grapples with surging production costs amid the ongoing…
In a move aimed at providing relief to struggling exporters, the Pakistani government has released Rs10 billion in outstanding subsidies and textile upgradation claims. This significant payment comes at a time when the country's export proceeds are declining, and the textile sector is grappling with surging production costs due to the ongoing Middle East conflict.
While the bulk of the released amount pertains to the Textile Upgradation Fund for 2009-14 (Rs4.35 billion) and Duty Drawback of Taxes (201,821) (Rs4.18 billion), an outstanding amount of Rs1.94 billion remains unpaid. This bulk release is intended to improve industrial liquidity and support export growth. However, many industries are still awaiting their refunds.
Textile and non-textile sectors have been benefiting from these allocations, with smaller but long-pending claims also being addressed. For the non-textile sector, the government has released significant sums under the Local Taxes and Levies Drawback (LTLD) Orders 2017 and 2018, totaling Rs127.79 million and Rs1.09 billion, respectively.
These refunds are particularly crucial for smaller exporters who face tighter liquidity constraints. With the majority of decade-old pending dues cleared, exporters are expected to regain liquidity, enhance competitiveness, and expand their presence in international markets.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
