Government assures refund of old-age, social security deposits to Textile exporters

In a bid to improve the economic activity of the country, the Government of Pakistan has decided to refund old-age benefit and social security deposits to registered textile exporters.

Secretary of Textile Ministry Shahid Rashid signified the importance of the textile industry and highlighted that this sector remains to be the biggest source of foreign exchange inflow and employment.

Addressing to the Pakistan Textile Exporters Association, Rashid ensured that the government was aware of the problems faced by the industry and will go the extra mile in resolving the issues. He said that the textile industry is the backbone of the economy, but due to a shortage of funds, the textile policy could not be implemented in true spirit.

The textile policy, according to Rashid, contains of all the strategies devised to curb the growing problems faced by the industry and will give a sustainable solution at least, if not more.

Businessmen have raised their voice for a prompt solution in regard to the amount stuck in the scheme for Drawback of Local Taxes and Levies. The facility expired in June this year, but Industrialists believe that this should be extended for another two years, at least. A high-level meeting is scheduled for this week to discuss this proposition.

It should also be noted that the State Bank of Pakistan slashed its discount rate by 150 basis points to bring it down to 12%. The government is trying its best to curb the deteriorating economic situation, but the energy crisis, coupled with the law and order situation has weighed down their efforts.

Posted by Hammad Malik on Oct 20 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry