June 07, 2008	Saturday	Jamadi-us-Sani 02, 1429

FAISALABAD, June 6: The Pakistan Hosiery Manufacturers Association (PHMA) has warned that withdrawal of the Research & Development (R&D) support Facility for next fiscal year would lead to the closure of a large number of units in the country.

PHMA zonal chairman Javed Aslam said in a statement that the R&D facility was already being given on percentage basis on exports and every exporter was getting this facility proportionally.

He said it was illogical to extend this facility on volume basis. The government should refrain from facilitating handpicked exporters through discriminatory policies.

Mr. Aslam said knitwear industry had already been suffering huge losses and trying to survive through the intensive global competition.

He said if the R&D facility was withdrawn and replaced with the progressive rebate/drawback system, more hosiery units would become unviable.

The export-oriented value added sector is already battling for its survival in the face of stiff competition in the international markets.

The rising cost of doing business is also leading to mass employment of skilled and unskilled labour, he added.

The PHMA zonal chief suggested that the entire chain of supplies to the garment industry should be under withholding tax regime.