The textile industry has criticised the government’s budgetary measures as insufficient for a significant increase in the country’s exports.
The value-added textile sector has requested additional relief and concessions in order to meet the double-digit export growth target and earn more than $26 billion in foreign exchange in the fiscal year 2021-2022. (FY22).
“Most of our [textile sector] demands were not taken into account in the budget,” he explained.
He stated that the major demand of value-added textile exports associations was the restoration of Zero Rating on GST “No Payment No Refund Regime” through the revival of SRO 1125 in letter and spirit, but that the federal budget failed to address this critical demand.
The reintroduction of the zero-rating regime will aid in the resolution of textile exporters’ liquidity problems.
According to Yousuf Yaqob, the textile industry is facing a shortage of cotton yarn and is spending a large amount of foreign currency on its import. He urged the federal government to revise its industry and export sector measurers in the coming fiscal year.
