The spokesman of Karachi Chamber of Commerce and Industry (KCCI) criticised State Bank of Pakistan for refusing claims in respect of Research and Development (R&D) support as on June 25,2008 despite validity to be expired on June 30,2008 for the shipment as per R&D support order 2005. It means that export shipment in between June 25 to 30 would not get R&D support.
However, in the budget 2008-09 there was no indication whether the support would continue during fiscal year 2008-09 or not. He proposed that R&D support should be continued to textile sector as share of textile sector in overall export is more than 65 percent and this step will hurt the exports of textile.
He further said that by these measures industry will be in immense pressure and would have bad impact on overall economy. If the support to the textile sector is not continued also it would adversely affect the overall exports of the country and other exportable items will also suffer a serious blow, discouraging local entrepreneurs to play their role in economy of the country. Therefore he suggested that the government should take necessary measures to continue the R&D support for the fiscal year 2008-09. -PR