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    Pakistan Government Agrees To Resume Textile And Garment Industry Research And Development Subsidy

    2008/9/5 10:14:00 37

    Pakistan Subsidy For Textile And Garment Industry

    According to the Pakistan business record September 1st, the government of the Republic of China has recently agreed to restore subsidies to the textile and garment industry, with a total subsidy of 12 billion rupees (about 170 million US dollars), mainly for R & D support to the textile and garment industry.

    The specific subsidy scheme shall be determined by the Ministry of textile industry through consultation with all parties concerned.

    It is reported that since the 2005-06 fiscal year (July 2005), the Pakistani government began to implement the textile research and development subsidy scheme, providing 3%-6% subsidies in accordance with the export volume of enterprises, so as to promote the export of textile industry.

    In the fiscal year 2007-08, the R & D subsidy of the textile industry reached 30 billion rupees (equivalent to US $440 million), but the export performance was not satisfactory. Therefore, the Palestinian government did not consider the subsidy in the 2008-09 fiscal year budget to continue to provide this subsidy. After all parties' efforts, the Palestinian government decided to resume it, but the total amount of subsidy is far from the 40 billion rupees proposed by the textile industry.


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