Mixed reactions in Pakistan to EU leather duties decision
The Karachi Chamber of Commerce and Industry (KCCI) has welcomed the European Union’s decision to suspend import duties on 75 Pakistani goods including leather, textiles and agriculture goods for a three-year period.
KCCI president Muhammad Saeed Shafiq, senior vice president Talat Mahmood and vice president Junaid Esmail Makda said that the Pakistani government had worked hard to achieve the concession and that the suspension is good news. However, they said that more needed to be done to help Pakistani exporters following the devastating floods they have experienced.
Fawad Ijaz Khan, chairman of the Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) has also commented on the decision. He said that it will offer no benefit to leather garment exporters, because these exports benefit from a generalised system of preference scheme. The only leathergoods firms to benefit from the change will be glove manufacturers, who pay duties of between 5% and 10%.
Mr Khan added that the concessions could also lead to a shortage of leather in Pakistan after millions of livestock were destroyed or displaced during the floods.
