Daily Times

KARACHI: Pakistan Economy Watch (PEW) on Sunday blamed Federal Bureau of Revenue (FBR) for choked growth and reduced exports.

“FBR continue to block export refunds to show improved collection in a bid to please the International Monetary Fund (IMF) which is against national interests,” it said in a statement from Islamabad.

“The policy of the FBR has left export sector reeling with lost competitiveness; therefore, the government should consider abolishing refund system, said Dr PEW President Murtaza Mughal.

He said that exporters should be provided facility of zero-rated regime as the withheld refunds continue to damage competitiveness of export sector. Mughal said that the continuous fall in exports is threatening largest export earning sector of textiles, which is also the largest employment provider after agriculture.

The president said that the government has repeatedly announced paying stuck up refunds but to no avail as five percent money of exporters is withheld in refund process while thirty percent of working capital of textile sector is being held since years. “The running units in terxtile sector has scaled down their capacity by 30 percent and millers are forced to get costly loans from banks to keep their business running and honour commitments,” he added.

“Delayed refunds has resulted in increased cost of doing business and unmet obligations damaging country’s reputation,” he said, adding that the issue continue to erode country’s competitive edge in the international market.

Law of refund payment within 45 days is being violated since long which has damaged the textile and other export sectors that will eat up foreign exchange reserves,” he warned.