August 18, 2007	Saturday	Sha’aban 4, 1428

LAHORE, Aug 17: The textile ministry has drafted rules to allow research and development (R&D) facility to textile exporters. The notification is expected to be issued in a couple of days, said Mr Ijaz Khokhar, chairman, Readymade Garments Manufacturers and Exporters Association (PRGMEA) on Friday.

Mr Khokhar urged the central bank to start entertaining exporters’ claims for reimbursement of the allowance as its notification is now ready and will be issued in a couple of days.

The government had allowed textile apparel sector a six per cent R&D allowance and home textiles five per cent allowance in 2005 for the first time for one year to help exporters offset the impact of growing cost of production on their exports and sustain in the global markets.

The three per cent R&D subsidy was extended to cover textile finishing industry the next year. The polyester industry has also been allowed 3.5pc subsidy from the current financial year.