December 08, 2006	Friday	Ziqa'ad 16, 1427

ISLAMABAD, Dec 7: Prime Minister Shaukat Aziz on Thursday directed the CBR to immediately release Rs22 billion withheld sales tax refunds of the textile sector.

An official source on condition of anonymity told Dawn that the premier asked the CBR chairman to workout measures for releasing the refunds to exporters at the earliest. The directive among others came during the second meeting of the National Textile Strategy Committee (NTSC) to review the proposals of the sub-committee regarding framing of future textile policy.

The meeting was informed that the current zero rating policy of the government was defective and needed immediate redressal, the official said. It was also pointed out that the gas prices were also very high and required to be revised down.

The official further said that the textile exports recorded decline during July-October FY07 due to over-shipment during the same period last year for exhausting of the duty paid inputs for claiming refunds.

The prime minister was informed that textile exports started growth in comparison to previous months in November 2006. This growth would further go up in the months ahead, added the official.An official announcement issued after the meeting said that Prime Minister Shaukat Aziz informed the committee that the government was modifying the textile strategy in order to make it more viable, competitive and sustainable.

He said that the new textile policy would be worked out keeping in view the paradigm changes took place in the textile industry globally. The government would take all steps for improving the position of the local industry in the global trade.

Mr Aziz said that all-out efforts would be made to attract foreign capital in the textile sector to bring it at par with the other sectors of the economy.

The prime minister said that improved productivity, competitiveness and reduced cost of production were the key to achieving the textile export target and the government would facilitate the private sector to meet it.

He emphasised the need to retool and reform the industry in keeping with the best management practices. He said that the government was also making focused efforts to improve the infrastructure and the logistics chain in order to lower the cost of production.

He said the government was also taking various measures to increase the production of cotton through introduction of better seeds.

Mr Aziz said that the government would continue to take steps to further develop the textile sector focusing on bridging the skills gap, promoting research and development activities, facilitating increase in the number of women employees, outsourcing of specialised work and simplification of procedures.