Govt refuses to compensate textile sector over Rs 15bn losses: Razak Dawood

ISLAMABAD: Adviser to Prime Minister on Commerce and Industry Abdul Razak Dawood said that the government has decided against accepting the demand of top textile mills to compensate their losses of upto Rs 15 billion, ARY NEWS reported on Wednesday.

He announced this on his Twitter account today. The special assistant said that they have decided not to approve an unjust bail out request from top 26 textile mills of the country.

“A few firms made a commercial decision to take risk and sold forward US$. They are now asking [government] to cover their losses (Rs.15 billion),” he said in his message.

Dawood said that he feel that was not fair as it was a business decision which did not work out.

“It was also discussed at highest level and my views were supported. It has therefore been decided that [government] will not compensate these firms from tax payers’ money.”

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It is pertinent to mention here that on March 19, Abdul Razak Dawood announced that Ministry of Commerce has released Rs 9.37b to textile exporters under various schemes.

Taking to Twitter, he said the Ministry of Commerce released duty drawback on taxes (DDT) Rs3.9 billion under 2018-21 and Rs 3.8 billion DDT under 2017-18.

Abdul Razzak Dawood also announced that the government will be giving a relief package to the exporters.

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