Pakistan facing higher costs

09/09/2010
The Pakistan Tanners Association has issued new figures that show exports of leather and leathergoods from the country have declined by more than 30% in three years.

Chairman of the organisation Agha Saiddain, said that one of the reasons for this was that the cost of doing business in Pakistan has gone up, with increases in labour costs and energy bills putting the cost of a square-foot of leather up by between 50% and 60%. Similarly, the cost of imported chemicals has gone up by between 30% and 40%.

Meanwhile the price Pakistani tanners are able to secure in export markets for some products has come down.

Mr Saiddain was critical of some aspects of government policy, which he said had made life even more difficult for exporting companies.