KARACHI, June 14: Prime Minister Shaukat Aziz has assured the leather industry of allowing 6pc Research & Development (R&D) support to remain competitive on world markets.A delegation of Pakistan Leather Garments Manufacturers and Exporters Association (Plgmea) headed by its chairman Ch Ahmed Zulfiqar Hayat and Punjab Minister for Industries Ajmal Cheema called on the prime minister on Tuesday and requested for R&D support to the leather industry.The prime minister directed the Additional Secretary Ministry of Finance Javed Akhtar to prepare a detailed case for the proposal of allowing 6pc R&D support to leather industry and present it before the Economic Coordination Committee (ECC) for approval.
Ch Ahmed apprised the prime minister that R&D was essential for the leather goods industry to face the price competition from low-cost countries like China.
The PLGMEA chief further said that product differentiation was the key success factor for surviving in cut-throat price competition. He said that total financial impact of 6pc R&D support for leather garments, leather gloves and leather goods exports would come at around Rs2.25bn only for 2006-07.
