Delay in implementation of issuing 6% Research & Development (R&D) fund to apparel sector has entered into the third quarter of the current fiscal year. It is worth mentioning here that the facility of 6% R&D fund was extended to the apparel sector in the fiscal year 2005-06 after the abolition of quota system under WTO regime.

It was agreed between the government and the apparel sector that this support would continue until 2006-07, followed by a 50% reduction (ie 3%) in 2007-08 and a termination of it in 2008-09, the current fiscal year.

However, the apparel sector not only convinced the government in extension of 100% R&D fund during 2007-08, but also lobbies from home textile and dying and finished fabrics also pursued the government and received 5% and 3% respectively last year.

Moreover, the sources in textile ministry said that the government has apprehension of a strong lobbying from rest of the stakeholders as once the government extends R&D fund to the apparel sector.