The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has expressed concern and reservations on the reduction of duty drawback rates on export of readymade garments.

PRGMEA Chairman Bilal Mulla has said the cost of doing business in Pakistan, especially in value-added readymade garment sector, is increasing. Recent reduction in duty drawback rates for importation of various raw materials used for the export of readymade garments, which was announced through the SR0.837(I)/2006 on August 17, will further increase the cost of readymade garments.

The Chairman termed this decrease highly unjustified, as for the last couple of years the import duty on raw materials used for the production of readymade garments are unchanged. At the moment the garment industry is in great crisis, which needs extensive support from the government. He was of the view recent decrease in duty drawback rates was announced without taking its stakeholders into confidence.