Pakistan Leather Garments Manufacturers and Exporters Association (PLMGEA) has pointed out that more than six-months have passed but the leather garment exporters have not received a single freight subsidy claim from their banks.

The freight subsidy scheme on the export of leather garments was announced by the Export Development Fund (EDF) Board of Ministry of Commerce in January this year, and the necessary instructions were issued to the Export Promotion Bureau (EPB) so they would start releasing the subsidies. The subsidies mean 25 per cent of the freight costs are paid on the export of leather garments during 2005.

Mr. Fawad Ijaz Khan, PLMGEA chairman, has urged the government to ensure early settlement of their subsidy claims, suggesting there is an urgent need to revamp the Schemes of Freight Subsidy to ensure exporters receive their subsidy claims without delay. Some Freight Subsidy cases were filed more than two years ago but nothing has been received.

Mr. Fawad has proposed the following measures so that the three Freight Subsidy Schemes are more useful for Exporters: The steering committee of EPB should include nominees of major export associations; the time limit of filing Freight Subsidy claims should be increased to 120 days from the current 60 days; the auditors should refrain from raising flimsy objections and should concentrate on the main parameters; and the EPB should notify the names of eligible countries of export (under $ 10 million in annual exports) and eligible commodities (under $ 5 million annual export) for the next two financial years under the General Freight Subsidy Scheme.