State Bank of Pakistan new procedure for Prime Minister Package not executable: PRGMEA

Lahore, December 21, 2017 (PPI-OT):The ministries as well as the central bank, instead of quick implementation of PM Export Package, are constantly using delaying tactics, involving lengthy procedure, complex methodology and such conditions which can never be fulfilled – a lollypop to the exporters. Pakistan Readymade Garments Manufacturers and Exporters Association Senior Vice Chairman Sheikh Luqman Amin expressed serious concern over elimination of ‘Associations role’ in the new Notification No. 1(42-A)TID/17-TR-II dated 12th Dec 2017, stating that the new procedure is not practicable and cannot be implemented.

Such notifications and circulars show that bureaucracy is in no mood to implement the PM Package at a time when the country suffers all time high trade deficit of $32.6 billion in FY17, jumping by over 36% against last fiscal year. Sheikh Luqman said that the role of Associations must be restored in the DDT Order 2017-18, if government is serious for real implementation of PM Package and with full transparency and merit.

He said that ministry of textile had assured the exporters of simple procedure and paperless working, but in the new notification the central bank has involved more paper working and lengthy process for disbursement of duty drawback claims under PM Package. Instead of involving associations the exporters have been asked to directly submit their claims to the banks which have no technical staff to evaluate the claims.

He said that earlier the associations were exercising due diligence to ensure authenticity of the documents which were verified by the notified committee members of the Associations. In the same way, the associations used to undertake the responsibility to check documents, verify the claims of exporters and certify the claims for onwards to Authorized Dealers like GD for eligible HS Code, Bill of Lading to confirm shipment, verify PRC Annexure IV to check the validity of time period whether claim fall within 90 days or not.

He said that the Associations also used to certify the authenticity of information provided by the exporting units and verify the documents. He said that with eliminating role of the Associations, the long delay will multiply to manifolds as the banks don’t have capacity and required skills to scrutinize the claims solely. Sheikh Luqman stressed the need for continuation of transparent role of trade bodies in implementation of export promotion initiatives. The PRGMEA leader observed that the SBP has taken one-sided decision without consultation of the associations, which are the elected platforms of industry.

He appealed the Prime Minister to direct State Bank and Ministry of Textile Industry to restore Associations role in disbursement of DDT Claim under revised PM Export Package 2017-18 at the soonest to give confidence to the exporters who are battling hard to earn foreign exchange. Sheikh Luqman added that billions of rupees against previous Drawback of Local Taxes and Levies are pending with government causing liquidity problems to the exporters in keeping up their export commitment, which must be released immediately to streamline cash flow.

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
Tel: +92-21-35890651-2
Fax: +92-21-35890653

You May Also Like