KARACHI, July 30: Leaders of home textiles have taken strong exception to the government’s move to allow research and development (R&D) support only to the apparel sector as has been indicated by the finance minister in a meeting with a delegation of Pakistan Apparel Forum.

There had been strong demand from the textile industry as a whole for the continuation of R&D beyond June 30, 2008 but the government did not allocate any funds in the budget 2009 on this account.

Leaders of four major trade bodies representing hosiery, readymade garments, knitwear and cotton fashion apparel met Finance Minister Naveed Qamar in Islamabad on Tuesday and managed to convince him to allow six per cent R&D for apparel sector.

The manufacturers-cum-exporters of home textiles feel that if their exports are not given such support they would further lose their share in the world market as their exports have already shown negative growth during 2007-08.

Pakistan Bedwear Exporters Association (PBEA) chairman Shabir Ahmed said that bedwear exports were down by 5.43 per cent during 2007-08 at $1.887 billion as compared to $1.995 billion last year.

He said that bedwear exports to the European Union have to face 10 per cent customs duty and 5.8 per cent anti-dumping duty. Bangladesh, having the status of least developed country, does not have to pay customs duty.

Towel Manufacturers’ Association former chairman Muzzamil Husain said that towel exports during 2007-08 were down by 1.5 to 2 per cent at $615 million owing to tough competition in the world market.

He felt that if there had been no R&D the decline in towel exports would have been much higher. He said that owing to high cost of production there were rising cases of bank defaults in Karachi and Faisalabad.