Stuck-up R&D fund to be cleared within week: Tarin

The Advisor to Prime Minister on Finance Shaukat Tarin said Wednesday the stuck up Research & Development (R&D) fund of apparel sector, under the SRO 437, will be cleared within this week. A meeting between the Finance Advisor and the apparel sector representatives was held Wednesday in Islamabad.
Earlier, the meeting was scheduled on Tuesday evening but it couldn't take place because of engagements of Mr Tarin in the Senate. The same meeting was held on Wednesday morning. Federal Textile Minister Rana Farook Saeed was also present in the meeting.
Sources told Business Recorder the Finance Advisor expressed his wonders over undue delay in dispensation of the stuck up funds of apparel sector. According to him, he was expecting that the State Bank of Pakistan (SBP) have had released funds ahead of Eid festival.
It may be noted that State Bank of Pakistan (SBP) had held back the R&D fund for the period, June 25 - 30 on account of Rs10 billion exports during this short period. The apparel sector, on the other hand, contended that actual exports for the contentious period was not more that Rs4 billion and the SBP should recalculate data available with it. Tarin assured the apparel sector delegation of early dispensation of funds to the sector within week.
Regarding other demands of the sector, including single digit mark up and freezing of Employees Old age Benefit Institute (EOBI), Education fund and Social Security for two years in case the government can not extend R&D fund to the sector for current fiscal, the Advisor asked the sector to show patience.
According to him, the government sincerely believes that the textile sector was backbone of national economy. The government wanted to extend a relief package to the whole textile sector at the earliest, he added.
Sources said the Advisor has suggested the apparel sector to come up with a workable proposal on overall package for the apparel sector in early February.
It may be noted that the spinners and weavers had also called on the Federal Advisor on Finance in the middle of January when he promised a relief to the sector 'within days'. Now again, similar promise is extended to the apparel sector by the Advisor. The independent observers believe that the government is extending hopes to the sector while anxiously waiting for approval of $15 billion package for Pakistan in the US Senate.