The president gave this assurance to All Pakistan Textile Mills Association (Aptma) Chairman Gohar Ejaz on Wednesday. He had summoned the Aptma leader for a presentation on the impact of RGST on the textile exports.

He said the government would not take any step hurting the textile exports, which constituted around 55 per cent of the total exports. He assured the exporters that the zero-rating for the intermediary processes would be maintained and RGST would be charged only on domestic sales of garments.

Pleading the industry's case, Mr Ejaz apprised the president that the imposition of RGST would jam the textile industry by creating cash flow problems for the manufacturers. He said the industry would have more than Rs500 billion stuck with the tax collectors because of the imposition of RGST, which could lead to closure of many units and result in export and job losses.

The president also reassured the Aptma chairman that the government would also not disturb the free market mechanism for the textile industry to boost exports.

He asked the Aptma leadership to work closely with the Sui Northern Gas Pipelines Limited (SNGPL) and ensure that gas supply to the export-oriented industry in Punjab was not suspended for more than two days a week.

Last month the SNGPL suspended gas supply to the textile industry for four days a week.

In the meanwhile, the sub-committee of the National Assembly's Standing Committee on Finance has asked Mr Ejaz and the Federal Bureau of Revenue (FBR) chairman to submit definitive proposals for maintaining zero-rated regime for the textile exports under RGST.

The next meeting of the sub-committee is expected to be held on December 11.