The Pakistan Leather Garment Manufacturers’ and Exporters’ Association (PLGMEA) has said in a statement that exports of raw hides will remain unrestricted despite an attempt by the Economic Coordination Committee (ECC) to impose restrictions. The ECC and the Pakistan government have imposed a ban on the export of fertilizer due to a shortage of urea. This action was taken to ensure that there was sufficient supply to meet the demands of the domestic agricultural sector. It was believed that similar measures would be taken concerning raw hides. However, the Ministry of Commerce has rejected a request for such a ban to be imposed on hides.

Chairman of the PLGMEA, Fawad Ijaz Khan appealed to the government to adopt a uniform policy in decision-making processes to protect local industries through ensuring sufficient supply of materials was applied across all industries. Fawad said that the ECC had restricted fertilizer exports as a result of an increase in domestic demand, which would have created a shortage, had exports not been restricted. He stated that the local leather industry is facing a similar situation due to excessive exports of wet blue, skins, and hides. He claimed that this shortage has led to a 26% decline in the export of made-up leather garments in the period July to October.

The government is said to have stated that it is unable to impose restrictions under World Trade Organisation (WTO) laws, however, Mr Fawad refuted this statement saying that WTO laws state clearly that a country can impose restrictions in order to protect domestic industry.

 

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