PTA and PLGMEA agree to disagree at 22nd Pakistan Leather Show
More than 100 firms exhibited at the 22nd Pakistan Leather Show at Karachi Expo Centre on April 20-21, 2002 .The fair was organised by the Pakistan tanners Association (PTA), Pakistan Leather Garments Manufacturers and Exporters Association (PLGMA) and the government’s Export Promotion Bureau (EPB). The backdrop to the fair was a disagreement between the PTA and PLGMEA over a proposed 20% export duty on finished leather - the garments association supports it while the tanners are strongly opposed.
Speaking at the event, commerce minister Abdul Razzak Dawood praised the co-operation between all sides to put on the fair and promised that a Leather Development Board would soon be formed. He hopes the board will prove to be a catalyst in promoting the country’s leather industry and serve as a platform for removing obstacles to its growth.
Mr. Fawad Ijaz Khan, Chairman of PLGMEA, said that restrictions are needed on leather exports to keep Pakistan competitive in garment production. He also demanded the government change its tax policy to boost the sector, promising that exports could increase from an expected $330 million this year to $1 billion over the next five years.
PTA chairman Masood Shaikh responded by saying that the garment sector should try and increase quality instead of demanding export duties. He said that the leather industry is one of Pakistan’s most important sectors, contributing 7% of the country’s total exports and 5% of manufacturing of GDP.
