PLGMEA condemns export refinance rate rise
Fawad Ijaz Khan, chairman of the Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) has strongly condemned the State Bank of Pakistan’s decision to increase the export refinance rate by 0.5%. Mr Fawad said the decision will significantly increase production costs for exporters.
The chairman pointed out that times are already difficult for leather garment producers because of the hide and skin shortage following the devastating floods. He said that around a million livestock were killed in the floods and a further 20 million have been displaced and are facing starvation and disease.
Added to this, utility rates have risen, prompting a rise in overall production costs. Pakistan is struggling to remain competitive with India and China, where costs, he claims, are lower. Poor law and order in the country is acting as a deterrent to overseas buyers who might otherwise visit the country to view its autumn-winter 2011-12 collections.
Mr Fawad urged the bank’s governor to withdraw the rate increase as soon as possible.
