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Fabric For Garment KARACHI: Secretary Ministry of Textile Industries Abdul Rauf Chaudhry has assured textile exporters that the research and development (R&D) support issue will be resolved before budget presentation for next fiscal year in the National Assembly.No date for the federal budget presentation for 2008-09 has been announced yet, but it is usually unveiled in the first or second week of June every year.Chaudhry was responding to the queries made by members of Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) at a meeting held here on Wednesday. Textile Commissioner Muhammad Idrees Ahmed was also present in the meeting.Secretary Textile, who took over the charge a week ago, added that the summary on R&D support, which was earlier sent to the textile ministry by industry stakeholders, was lying with him.The summary demanded the government extend R&D support for another five years at the rate of nine per cent instead of current six per cent provided to the textile industry.“I will hand over this summary to Secretary Finance in a meeting instead of sending it to him by mail service. I will also brief other government officials in the concerned ministries ie commerce on this issue. I will also discuss this issue with the members of Economic Coordination Committee (ECC) and federal cabinet. And I personally think that this R&D support be continued to the industry despite dismal garment exports,” he said.The research and development support, a six per cent return of total amount of garments exports, is being provided to the textile exporters. This incentive would automatically come to an end with the end of current fiscal year on June 30.Governor SBP Dr Shamshad Akhtar is of the view that R&D support is being misused by some industry players and should not be provided any more. “Government had provided around Rs40 billion to the textile industry in R&D support till April 15 in the current fiscal year. Despite this massive support, the garment exports of the county declined by over three per cent to $7.765 billion in the first nine months of the current financial year against $8.017 billion exports recorded in the same period last year,” Dr Akhtar earlier briefed the ECC according to media reports.Chaudhry said that he was surprised by the SBP Governor’s statement on R&D support. He was of the view that Dr Akhtar was not told the truth and needed briefing by some industry players.Bilal Mulla, Chairman PRGMEA, claimed that R&D was not being misused. “If anyone from this industry is committing such crime, the Governor SBP should disclose his name and he should be penalised for that bad practice,” he demanded.Citing official reports, Shahzad Salim, Chairman PRGMEA (South Zone), underlined that garment exports were increasing in countries where R&D support was available. Export proceeds to these countries rose to $3.2 billion in 2007 from $2.4 billion in 2005.While exports to those countries, which were not given R&D support, declined to $0.17 billion in 2007 from $0.3 billion in 2005, he added.Salim demanded of the government either to provide subsidies or provide level playing field in the world markets. “Our competitors i.e. India, China and Bangladesh are exempted from paying duties in major markets,” he added.Readymade garment exporters also demanded increasing R&D support to 74 countries, as availed by fabric and home textiles players, from currently available only in 32 countries.