Due to the outbreak of Coronavirus, major markets for Pakistani textile products in Europe and the United States have completely collapsed, sales of textile products have stopped and the situation does not seem to return to normal even after one year, All Pakistan Textile Mills Association (APTMA) said. According to the report, the corona epidemic has broken the back of the Pakistani textile industry.
Export deals are being cancelled and payments that are due are delayed, new orders are not being received. The textile industry is facing a severe shortage of capital to maintain its existence. The Association has appealed in an emergency call by the Federal Ministry of Commerce, Abdul Razzaq Dawood, to immediately restore the Zero Rate Facility (SRO 1125) to drag out the textile industry from the crisis.
The letter said that the sales tax exemption was based on the FBR’s estimate of 50 percent local sales of textile products, but now the FBR itself has disproved the estimate. Local sales of the textile industry accounted for 20% of total sales. Where Pakistan textile industry is suffering from Coronavirus the other exports are also under the radar. Pakistan has seen a steep decline in export revenues due to the outbreak, it would take more than one year to bring the situation back to normal.
This news has been taken from www.researchsnipers.com
