Chairman of the Pakistan Tanners’ Association (PTA), Khurshid Alam, has condemned the State Bank of Pakistan's decision to increase the export refinance rate by 0.5%. His comments follow those of the Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) earlier this week.

According to Mr Alam, the increase will hit the leather sector hard and will add to the cost of producing leather and leathergoods. The PTA has been asking the government for rates to be reduced, but rather than cutting the rates, the bank has increased them from 6% when they were first introduced to the current 9%.

Mr Alam described the rise as unjustified and said the move would make Pakistani leathergoods less competitive.

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