KARACHI, Aug 23: Manufacturers-cum-exporters, who do not have in-house dyeing and processing facilities, may lose orders worth millions of dollars as they cannot compete with their local rivals who have been given the research and development (R&D) subsidy.

Business leaders from Karachi and Faisalabad told Dawn that the delay by the government to announce steps ensuring level-playing field to all manufacturers-cum-exporters of textile sector was not only depriving them fresh export contracts but in many cases existing contracts were being cancelled by buyers.

“We cannot compete with a five per cent margin (R&D) in cost as foreign buyers normally take their share of such cushion allowed by the country of origin to their exporters,” lamented Pakistan Textile Exporters Association (PTEA) senior-vice chairman Haroon Rasheed Puri while talking to Dawn from Faisalabad.

He said that many businessmen who had been denied the R&D support were manufacturers-cum-exporters and had made huge investments in spinning, weaving and stitching sector.

“If couple of activities in the cycle of manufacturing of textiles and clothing are made criterion for the eligibility of getting R&D then what could be said about it,” he raised a question.

Mr Puri said that out of 105 members of PTEA only 20 had processing units and remaining 85 were manufacturers-cum-exporters.

He urged upon the government to take early decision in this regard otherwise a large number of textile units may be closed down in the near future. PTEA executive member Sohail Pasha said that Adviser to the Prime Minister on Finance Dr Salman Shah in a meeting held on August 16 had assured to rectify the situation and also hinted that a new SRO would be soon issued.

He urged the authorities to expedite the matter before it was too late as already they were receiving cancellation of export contracts. He also requested Dr Salman Shah to direct the Ministry for Textile Industry to issue the SRO without any further delay.

PTEA vice-chairman Karachi Zone Sameer Adour said that the contribution of dyeing and printing in total value-addition was just 10pc while 90 per cent was done by other activities including spinning, weaving and stitching.

Actually, he added, value-addition starts at stitching stage where all research work is required and exporters have to look into issues of designing, marketing and quality to meet specifications of buyers.

PTEA vice-chairman Amir Ahmed told Dawn that Dr Salman Shah had assured us that R&D would be given across-the-board but since a week had passed no progress had taken place and we were still waiting for the amended SRO to be issued.