August 10, 2006	Thursday	Rajab 14, 1427

KARACHI, Aug 9: Adviser to the prime minister on finance Dr Salman Shah has convened a meeting of disgruntled textile businessmen on Saturday.

These leaders representing value-added textile sector were unhappy with the textile package as they had been ignored unjustifiably in the package by not allowing them research and development support.

Since the announcement of the textile package these businessmen have been lobbying to pursue their case in wake of rising costs and tougher competition in the international market. About two days back the Minister for Textile Industry Mushtaq Ali Cheema also held a meeting with representatives of some textile trade bodies and assured them of his support.

Some reports, however, suggested that Mr Cheema’s meeting turned out to be a fiasco as he was unable to convince these leaders who threatened of opting for legal course by challenging the package in the court.

In the meantime, the ministry of textile industry on Wednesday issued an SRO to implement recently announced textile package. The ministry did not alter its earlier decision of allowing three per cent Research and Development (R&D) support to fabrics and five per cent to exporters of home textiles having their own dyeing and processing units.

As per procedure and conditions laid down by the SRO, R&D support would be provided to the home textiles, dyed and printed fabrics manufacturing-cum-exporting units under chapters 52, 55, 63 and 94 of the Pakistan Customs Tariff.

The R&D support would be spent by the industry on product and skill development, consultancy, market research, environments, improving of efficiency and trade fairs.

The protesting sectors, which have been excluded from the facility, were of the view that a discriminatory treatment had been meted out to them just to ensure that a few large groups benefited out of this scheme.Former chairman Pakistan Cloth Merchants Association (PCMA) Iqbal Mangrani told Dawn that the SRO for textile package had granted the R&D support for exporters of made-ups who had their own dyeing and processing units.

“It is very clear that it has been done just to protect certain vested interest whereas the policy is against the interest of export trade,” he said and demanded that the R&D support should be allowed to all manufacturers-cum-exporters, who are the back-bone of home textile exports.

“If the R&D support is restricted to exporters having dyeing and processing facility, they will have an edge in price thus other exporters with limited production facilities will lose competitiveness,” he explained.

He said if the government wanted to enhance exports of finished fabrics and made-ups, the R&D support should be given across-the-board and level-playing field should be ensured to all as was being done in garment industry.

Pakistan Bedwear Exporters Association chairman Shabir Ahmed said that Dr Salman Shah had invited a delegation to discuss the R&D issue. He said that the ministry of textile industry did not listen to their genuine demands.

Giving some details about his recent meeting with the minister for textile industry, he said it was disappointing as the minister was not ready to change his decision and even listen to our arguments based on logic.