Besides this, the government has released around Rs 3 billion for non-textile sectors so far covered in the PM package, sources added. Spokesperson Textile Division Kanwar Usman also confirmed the Business Recorder the release of Rs 5 billion for textile sector. The Ministry of Finance has released the amount to the SBP against textile exporters claims under the PM package, he added.
The Economic Coordination Committee of the Cabinet had amended the PM package in October to further facilitate the textile sector, and now 50 percent of the drawback will be provided without condition of increment and remaining 50 percent will be provided if the exporter achieves an increase of 10 percent or more in exports during fiscal year 2017-18 as compared to fiscal year 2016-17.
To further facilitate the exporters and diversify the market, an additional 2 percent shall be allowed for exports to nontraditional markets-Africa, Latin America, non-EU countries, Commonwealth of Independent States and Oceania.
On December 12, the Ministry of Textile and Commerce introduced major measures to facilitate duty drawback of local taxes including; revolving limit will be provided by Finance Division to the SBP, speedy verification of claims through Federal Board of Revenue's (FBR) electronic data access to the SBP and elimination of the role of textile associations in claims verification.
In this regard, the ministry had issued a notification, ie, "Duty Drawback of Taxes Order 2017-18."
Under the new procedure for claims issued by the ministry, the SBP in consultation with Ministry of Commerce and Textile shall devise a mechanism to ensure prompt clearance of drawback claims in compliance with this order.
The units shall file claims for the incentive in the form as devised by the SBP and submit it to the authorized dealer. The authorized dealer will scrutinize the claim as per the procedure circulated by the SBP.
Claims found in order would be submitted to the field offices of the SBP-Banking Services Corporations (SBP-SSC) within two weeks after receiving the claim from the unit with an undertaking in the prescribed manner.
The SBP will scrutinize the claims and release the amount of claim to the authorized dealers, within 30 days, by debiting the relevant government head of account. The Finance Division will provide a revolving limit to the SBP. The SBP will request for further release of funds to the Finance Division once the limit is utilized up to 80 percent.
The authorized dealers will credit the amount of claim received from the SBP within 24 hours to the unit. The Federal Board of Revenue (FBR) will provide electronic data to the SBP for expeditious verification/scrutiny of claims.
Prime Minister Shahid Khaqan Abbasi and his economic team has restored textile exporter's confidence slightly by improving Prime Minister's export incentives package and allowing rupee depreciation which would further boost exports in coming months.
This was the consensus among industry stakeholders as well as government officials, who told the Business Recorder that Abbasi administration comparatively has taken some good initiatives and given more focus to the exports-oriented sectors.