Body to review Rs. 30 billion packages for textile

Faced with a soaring budget deficit, the government constituted a high- level Committee to review the economic implications of the proposed Rs. 30 billion cash subsidy package for the textile exporters. The package is designed to subsidise consumer prices of textile and clothing products for their sale in the markets of rich countries.

The government has already doled out more than Rs.32 billion to the textile exporters during the last over two years under the head of 6% research and development (R&D) subsidy, which is expected to reach Rs.50 billion by end of the current year.

The package recommended by the Ministry of Textile was discussed at length at the Economic Coordination Committee (ECC) meeting headed by Prime Minister Yousuf Raza Gilani, which led to the formulation of the committee.