KARACHI, May 30: Pakistan Readymade Garments Manufacturers & Exporters Association (Prgmea) has expressed serious concern over press reports that the Central Board of Revenue is considering reducing duty drawback rates in the budget

2002-03.

Masood Naqi, Central Chairman of Prgmea said in a statement on Thursday that the reports, if true, were contrary to the commitments made by the ministers of finance and commerce to the exporters that the duty drawback rates would be restored to the level of June 30, 2001, effective from the new budget.

He said the government had fully realized and acknowledged that the textile exporters had suffered huge losses owing to closure of the US market following the September 11 event and appreciation of the rupee against the dollar, adding and they need to be compensated.

Consequently, many organizations such as the State Bank and the Export Promotion Bureau announced rescue measures, including reduction in export finance rates and increase in subsidy for participation in trade fairs, he said, adding the gradual cut in duty drawback rates was also suspended for two quarters.

The behaviour of CBR was, however, remained conspicuous, which not only held back billion of rupees of exporters in sales tax refund but is also bent upon reducing duty drawback rates every now and then, he added

Masood Naqi appealed to President Pervez Musharraf, who is also Chairman of Federal Export Board, to direct the CBR to release huge amount of sales tax refund due to the exporters, otherwise, export factories would be closed, rendering hundreds of thousand of workers unemployed.