Manufacturers-cum-exporters, who do not have in-house dyeing and processing facilities, may lose orders worth millions of dollars as they cannot compete with their local rivals who have been given the research and development (R&D) subsidy. The delay by the government to announce steps ensuring level-playing field to all manufacturers-cum-exporters of textile sector was not only depriving them fresh export contracts but in many cases existing contracts were being cancelled by buyers.

We cannot compete with a 5% margin (R&D) in cost as foreign buyers normally take their share of such cushion allowed by the country of origin to their exporters, said lamented Pakistan Textile Exporters Association (PTEA) Senior-Vice Chairman Haroon Rasheed Puri. He said that many businessmen who had been denied the R&D support were manufacturers-cum-exporters and had made huge investments in spinning, weaving and stitching sector. Mr.Puri said that out of 105 members of PTEA only 20 had processing units and remaining 85 were manufacturers-cum-exporters. He urged upon the government to take early decision in this regard otherwise a large number of textile units may be closed down in the near future.