June 13, 2008	Friday	Jamadi-us-Sani 08, 1429

KARACHI, June 12: Textile apparel exporters and manufacturers has termed the budget a hoax and said that the sector is being ignored as no major incentives have been suggested in the budget for the export sector.

With charged emotions, the members of the apparel sector assembled at the Pakistan Hosiery Manufacturers Association House at Sharea Faisal chanting slogans against the new budget, and protested over the absence of any support for the ailing textile sector and its dwindling exports.

They apprehended that if six per cent Research and Development (R&D) support was discontinued, it would prove a last nail in the coffin of the value-added apparel sector.

PHMA Southern Zone Chairman Jawed Bilwani tried to calm the agitating members and said there seems to be some confusion with regard to phasing out subsidies in the finance bill 2008-09 and the R&D.

“R&D is not a subsidy, but a support which cannot be phased out as was being suggested in the bill.” However, he assured the hosiery and knitwear exporters that he would take up the matter with the finance and the commerce ministers.

Pakistan Commercial Exporters of Towels Association chairman Ali Ashraf Khan termed the budget 2008-09 a hoax, and said instead of increasing the R&D support, the government had on one hand increased the GST rate and on the other dropped R&D.

Towel Manufacturers’ Association’s patron-in-chief S M A Rizvi said that it seems the budget 2008-09 planners have no priority for exports and wanted to increase foreign exchange reserves by withdrawing R&D support.

He further said that there was no indication in the budget that agriculture tax had been imposed on big landlords.

He urged the prime minister, the finance and textile ministers to not only restore but also increase R&D support rates.