According to Pakistan’s “Business Record” report, officials from the Ministry of Textile Industry of Pakistan said that due to financial constraints, the Pakistani government refused to continue to provide 6% R&D support to the apparel sector.
Reports say that in order to make the textile sector more competitive, the Pakistani government has provided R&D support to enterprises at a rate of 6% of the export volume of the textile and garment industry since the 2004/05 fiscal year. However, due to tight financial resources, the Central Bank of Pakistan decided to provide R&D support to enterprises in 2008. We will stop providing relevant R&D support after June 30, 2020.
However, Pakistani textile companies generally believe that they are already facing severe competition in the international market. The production costs of textile companies in Bangladesh, India, and China have been reduced by 12%. For example, China has increased its export tax rebate rate from 7% to protect textile exporters. Increase to 15%.
Figures from the Federal Bureau of Statistics of Pakistan show that Pakistan’s textile exports in the first seven months of this fiscal year (as of January 2009) were US$5.82 billion, a decrease of 3.79% compared with US$6.05 billion in the same period of the previous fiscal year.
