Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) has demanded government's subsidy on Research and Development (R&D) like various sub-sectors of the textile industry.
Ironically, the government was subsidising R&D on exports of sub-sectors, like home textiles and fabric, to 74 countries while the same was in effect on the value-added garment exports to only 32 states, said Bilal Mulla, Chairman Prgmea, in a statement issued here on Thursday.
He said that as fabric exporters were allowed R&D subsidy to a larger group of countries, many competing states were getting inputs at more economical rates from Pakistan as compared to purchase of same fabric in local market by local exporters.
The chairman said despite substantial garment exports to Malaysia, Ukraine, Russia, Turkey, Norway, New Zealand and other countries of Central Asia, South America, Africa and EU no R&D subsidy was given by Islamabad on exports to the above mentioned regions.
The government on one hand was asking exporters to tap new world markets and make more value-addition in their products, but on the other hand was depriving the industry of a vital facility for unknown reasons, he lamented.
The Prgmea chief also suggested amalgamation of the three lists of countries into one for all the three sub-sectors including garments, home textiles and fabric export. He said some countries, which were not importing Pakistani garments at the moment, were likely to appear as potential markets for Pakistan in near future.
He said garment exporters were already facing several challenges including abolition of China textiles exports safeguards, increase in cotton prices, labour cost, energy etc, accession of other developing countries to WTO fold, an uncertain trade environment and stiff competition among suppliers of the South East.
Asian region was also demanding continuation of R&D subsidy for survival of the value-added products said the chairman adding that the government should extend the existing R&D facility till July 2010, said the release.-PR
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