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Discrimination in R&D subsidy to various textile sub-sectors
Feb '08
Mr. Bilal Mulla, Chairman, Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA), Karachi has invited attention of the Federal Government about the admissibility of Research & Development subsidy to manufacturers-cum-exporters of various sub-sectors of Textiles.

He said that Garment exports subsidy is applicable to 32 countries only, while Home Textiles and Fabrics export is eligible to 74 countries for Research & Development subsidy (list enclosed).

As fabric exporters are allowed R&D subsidy facility to a larger group of countries, many countries in competition are getting inputs at more economical rates from Pakistan as compared to purchase of same fabric in local market by Pakistan exporters.

The Chairman said that in addition to EU countries and five other countries, substantial export of garments is also being made to Malaysia, Central Asian countries, Ukraine, Russia, Turkey, Norway, New Zealand, and countries in South America and the African continent, but regrettably no R&D subsidy is provided for garments exports to these regions.

The Chairman said that the irregularity in R&D provided to the different textile sub-sectors is not understood. On the one hand the Government expects exporters to tap new world emerging markets and more value addition in their products, on the other the industry is deprived of the vital facility for unknown reasons, the Chairman PRGMEA added.

The Chairman appealed that addition of the mentioned countries in the R&D Subsidy scheme for Garments will help increase Pakistan exports as vast opportunities exist for breakthrough.

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