KARACHI, June 24: The State Bank’s decision to stop receiving Research and Development support claims of exporters from Wednesday, June 25, has panicked exporters, who were working on shipments as per the commerce ministry’s notified deadline of June 30, 2008.
Textile apparel leaders have taken strong exception to the sudden and unilateral decision taken by the SBP in its circular of June 23, 2008, notifying cut-off date for receiving R&D support claims from textile exporters up to June 25, 2008, against shipments in 2007-08.
The leaders pointed out that the Order (SRO-437(I)/2005) dated May 18, 2005 issued by the ministry of commerce allowed R&D to textile exporters effective from April 12, 2005, and until further orders.
Subsequently, they said that R&D support order of 2005 was amended through SRO-974(I)/2006 issued on Sept 14, 2006, thereby allowing the R&D support up to June 30, 2008.
By virtue of these amendments, they said, the R&D support order would stay enforced up to June 30, 2008. This means all export shipments made by textile exporters up to this date would be eligible for getting R&D support.
However, the SBP’s circular fixing the cut-off date for receiving R&D claims as June 25 is not in line with the notifications issued by the ministries of commerce and textile industry, they added.
Pakistan Knitwear and Sweater Exporters Association central chairman Rafiq Habib Godil told Dawn that the SBP circular had panicked the exporters and they have stopped working on export orders.
He said that the SBP action would further damage the already besieged industry working against all odds and fighting a war of its survival.
He said normally payments against exports take up to 120 days in realisation and according to MoC R&D Order 2005, 90 days are allowed after the date of realisation for filing R&D support claims.
Muzammil Husain, chairman R&D committee Towel Manufacturers’ Association urged upon the prime minister to intervene and save the crisis ridden value-added textile industry from such arbitrary decision.