Chairman of the Pakistan Leather Garments Manufacturers’ & Exporters’ Association (PLGMEA) Ahmed Zulfiqar Hayat has criticised and condemned the government's Central Revenue Board (CBR)’s decision to reduce the duty drawback rates on the export of leather garment to 3.22%. He pointed out that the Customs Input Output Co-efficient Organisation (IOCO) had unilaterally prepared the worksheet without consulting or sharing information with the PLGMEA. He argued that there is no justification for the 37.18% reduction in duty drawback rate from 5.17% to 3.22%, particularly at a time when the industry is facing a crisis with several factories having closed down.

He feels the reduction will lead to the widespread closure of leather garment factories and a large number of workers will lose their jobs.