Pakistan leather garments industry in danger
Adviser to the Pakistan Leather Garment Manufacturers and Exporters Association, Fawad Ijaz Khan has reported that the
He has urged the government to extend R&D support to save the value-added industry from total collapse. He said that commerce minister Humayun Akhtar Khan had recommended 6% R&D support to the leather garment industry in August 2005 but that this had never been realised.
Apparently the main reason for the government withholding R&D support was the reported 53% increase in leather garment and leather goods exports totalling $502 million from 2005-06 compared with $329 million the prior year. However, Mr Khan said this tremendous increase in official figures was recorded from August 2005 to June 2006 and that, after thorough investigation, the association had pointed out to the EPB and ministry of commerce that the increase in leather garment exports was inaccurate.
As a result, the government, with the help from the Association, removed the exports of non-genuine exporters during 2006-07 and showed a 45% decline in leather goods exports to $77 million from $140 million from July 2005 – September 2006.
