Pakistan government has released additional Rs 6.2 billion refunds to support its textile sector which has been badly hit by the outbreak of COVID-19 in the country. The money has been released under the drawback of local taxes and levy (DLTL) scheme of the government to facilitate exporters.
With the release of additional money, the cumulative amount released under the scheme reached Rs 51.2 billion during FY20. The government hopes this will resolve the liquidity issues of its exporters and enable them to further their exports through investment.
Pakistan's exports including the textile sector have been badly affected by the outbreak of the pandemic, partially due to closure of manufacturing units during the lockdown period and partially due to the fall in demand of Pakistani products in the international markets. Earlier in April, the government had issued DLTL refunds of Rs 20.5 billion for the textile sector to help industrialists pay dues to their employees during the closure of industries during the pandemic.
Last month, the Pakistan Readymade Garments Manufacturers and Exporters Association demanded several incentives from the government including release of the DLTL for export-oriented sectors including textile sector to sustain the industry amidst the severe liquidity crunch due to COVID-19.