ISLAMABAD, July 11: The government is likely to extend six per cent research and development (R&D) subsidy to the garment sector up to June 30, 2007. An official at the ministry of textile industry told Dawn on Tuesday that in the Trade Policy 2005-06, the support for garments was announced to be continued up to June 30, 2006. However, the commerce ministry notification did not mention any exact date for the validity of the export subsidy but said it would continue till further order.

According to the official, this notification created confusion among exporters that needed clarification at the earliest.

Prime Minister Shaukat Aziz is expected to finalise the issue by extending the subsidy to a definite period in the meeting of the Economic Coordination Committee on July 14.

The support is applicable to the list of eligible items as given under chapter 61 and 62 of the Pakistan Customs Tariff.