PLGMA Chairman fears 30-40% fall in Pakistan’s leather exports
The chairman of the newly formed PLGMA (Pakistan Leather Garments Manufacturers and Exporters Association), Fawad Ijaz Khan, said in a press conference on Wednesday (November 14) that exports in leather garments could drop by 30-40% from October-December 2001.
Talking about the effects of the terrorist attacks on America on September 11, Ijaz Khan said that companies were avoiding Pakistan on the advice of their governments and that the industry would suffer over the next year. He said that the situation in Afghanistan was proving to be very negative for the leather sector, and added: "Normally at this time of the year we are totally bogged down with our foreign buyers in making and finalising designs as well as preparing collection for next year season, but it is ironic it is no more like that and we are sitting idle."
Afghanistan is also one of the main sources for the supply of hide and skins, particularly goat and sheep, and this has been deeply affected by the US air strikes. Overall, the situation has benefited other countries such as India, which is one of those picking up foreign orders.
The PLGMA has made several demands on the Pakistani government to take the initiative to help the sector, including a call for a reduction in the rate of the export refinance loan, intervention to stabilise exchange rates and various tax breaks for exporters.
