Abnormal rise in Pakistan exports investigated

09/05/2006

The Pakistan Leather Garment Manufacturers’ & Exporters’ Association (PLGMEA) has requested that the government check the authenticity of leather garment export figures during the last three quarters. The Association believes that figures may show an "abnormal increase" due to over-invoicing and incorrect entries in customs documents.

Data from the Federal Bureau of Statistics showed that exports of leather garments during July 2005-March 2006 were $387 million compared with exports of $244 million during July 2004-March 2005, an increase of 57%. However, according to PLGMEA advisor Fawad Ijaz Khan, these export figures do not reflect the actual increase in exports of leather garments from Pakistan.

Mr Khan noted that a suspiciously large volume of leather garments was exported to the UAE, South Africa, Iran and Saudi Arabia. Exports to UAE were recorded at $60 million during July-December 2005 compared with $7 million during the corresponding period in the preceding year. Exports to Iran and Saudi Arabia were $20 million and $10 million compared with $0.3 million and $2 million respectively in the previous year. Again, exports to South Africa were $21 million compared with $8 million.