Senator Gul Muhammad Lot, Chairman of the Standing Committee of Senate on Textile, recently in a statement said that, implementation of the Reformed General Sales Tax (RGST) would help the textile sector to reap enough gains so as to help the government to reduce its reliance on loans from the State Bank of Pakistan and also from the overseas countries.
He revealed that, Pakistan is obliged to pay $13 billion to the International Monetary Fund (IMF) which it had borrowed from the global body and also needs to pay a mark up of $800 million for the same by June, 2011. It would be disastrous if the RGST is not properly implemented, he added.
The government each day needs to borrow two billion rupees from the State Bank of Pakistan, which is continuously expanding the deficit. As more funds of the central bank go to the government, lesser funds are left to the avail of the private banks and the private sector businesses and this boosts up the mark-up rates, the Senator said.
Fibre2fashion News Desk - India
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