KARACHI, May 14: The textile ministry has assured readymade garment exporters that it would fully back their demand for continuation of Research and Development (R&D) support which is coming to an end on June 30.

In a meeting with office-bearers of Pakistan Readymade Garment Manufacturers and Exporters Association (Prgmea) on Wednesday, Textile Secretary Abdul Rauf Chaudhry said a summary recommending continuation of the R&D would be submitted to the finance ministry and then put up before the Economic Coordination Committee (ECC) for approval.

Rauf Chaudhry stated that the ministry fully agrees that apparel exporters should continue to get R&D support to help them to maintain their world market share at a time when tough competition and high cost of production is threatening their survival.Prgmea chairman Bilal Mulla pointed out that $7 billion were invested in textile industry in recent years and due to highly labour intensive sector, it is considered as highest employment generating and foreign exchange earner.

Giving sector-wise comparative figures, he said that on investment of $1 million in spinning and weaving sector, only 34 jobs are created and it results in additional exports to the tune of $270,000.

Against this, he said, investment of equal magnitude in garments sector would generate 460 jobs giving additional exports of $3.2 million.

Similarly, he said when one bale of raw cotton is exported it earns $238, whereas clothing made and exported from one bale of cotton earns $1,600.

Prgmea (South zone) chairman Shahzad Saleem said in view of regional and world market conditions of tough competition, it seems that our apparel industry and exporters are losing their markets owing to high cost resulting from domestic inflation and lowering world market prices.

He urged the government to come forward and rescue apparel industry which exported up to $3.3 billion last year and earned around $2.2 billion up to February in current fiscal.

Mr Saleem said the R&D support was vital for the survival of apparel industry which needs duty-free market access in the US and the EU.

He also demanded that the government should further facilitate apparel industry by allowing duty-free import of accessories and other raw material and also give finances at lower mark-up.