KARACHI, June 18: The State Bank has notified to all banks the government decision of providing research and development support for textile garments exports to the US and the European Union.
A circular issued by the central bank on Saturday said the research and development support would be provided at the rate of six per cent of the free-on-board value of exports.
The R&D support shall be provided subject to the conditions that the exporting unit shall be a member of any of the associations registered with the Director Trade Organization (DTO), ministry of commerce, namely; PRGMEA (Pakistan Readymade Garments Manufacturers and Exporters Association), PHMA (Pakistan Hosiery Manufacturers Association), PAKSEA (Pakistan Knitwear and Sweater Exporters Association), and PCFAMEA (Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association).
Exporting units shall spend the amount received as R&D support on product development, skill development and training, upgradation of information technology and professional consultancy.
The expenditures incurred on these activities shall also be reflected in annual accounts and balance sheets of the exporting units.
The government has offered a six per cent R&D support to the garment exporters, enabling them to remain competitive in the EU markets in the wake of re-imposition of 12 per cent customs duty from January 1, 2005.
This has kept the garment exporters from increasing exports to the EU in the quota-free regime started from January 1.
