LAHORE: Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has urged the government to release the heldup sales tax refund claims of the value-added textile industry.

The association said a huge amount of liquidity is blocl(ed with the Federal Board of Revenue (FBR) causing immense problems to the cash-starved exporters.

`Our major portion of working capital was stuck up with the FBR as the textile exporters have not received their Drawback of Local Taxes and Levies (DLTL) outstanding for the last many years,` PHMA Chairman Adil Butt said on Saturday.

He said that industry`s revival pacl(age recently announced by the prime minister would give boost to the country`s exports only if the issue of liquidity crunch is also resolved on an emergency basis.

He said though the government issued sales tax Refund Payment Orders (RPOs), yet cheques were being delayed which was indeed most alarming and reflected poor financial management of the government.

Mr Butt urged the government to act decisively and rescue the value-added textile industry from financial crisis, as worst-ever cash flow crunch has brought the country`s largest industry to the verge of disaster.