State Bank of Pakistan (SBP) has started receiving Research and Development (R&D) cases pertaining to consignments made by textile exporters during June 25 to 30, 2008, said local textile exporters. Members of PTEA and other textile associations stated that government had allowed R&D facility to the textile exporters to make their products competitive in international markets in 2005.
This facility was extended every year, however, government announced to abandon it from the financial year 2008-2009. On the other hand SBP fixed June 24, 2008 as cut date to receive the R&D cases. This decision deprived textile exporters of this facility on their export consignments made during the last five days of the 2007-2008.
This irked the textile exporters who were facing tough competition in international markets and high tariff of gas and electricity in the domestic markets. On the pressing demand of textile exporters, government allowed to give them R&D facility on their consignments made from June 25-30, 2008. This decision was taken in October last year and exporters were asked to submit their cases relating to this period. He said that SBP was now receiving these cases but payment expected to be made on the receipt of required funds from the government.