Pakistan introduces freight subsidy on leather exports
The subsidy was devised by leather garment producers and exporters in conjunction with Commerce Minister Humayun Akhtar Khan. Although freight subsidy is normally paid to sectors with exports smaller than $5 million or markets with export volumes under $10 million, the leather industry has been allowed the subsidy due to its exceptionally difficult situation. The EPB has received a formal approval of the subsidy from the ministry of commerce.
The Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) will scrutinise the claims of leather garment exporters before they are filed with commercial banks. PLGMEA claims leather garments exports declined by 28% to $132 million in the July-December 2004 period, compared to $185 million in the corresponding period last year. They have, however, surged by 16% to $135 million during the period under review.
