Pakistan exporters request assistance

28/12/2006

Pakistan leather exporters have urged the country’s Central Board of Revenue (CBR) to implement a 50% reduction in the export refinance rate, a 75% decrease in designing costs and financial assistance for Research and Development (R&D) in an attempt to revive the industry.

The Pakistan Leather Garment and Manufacturers’ Association (PLGMA) stated that the garment industry is suffering due to high production costs and urged the CBR to take urgent measures in an attempt to increase the competitiveness of the sector.

During the period July to November 2006, exports of leather garments
fell by 41% in terms of volume and 35.76% in terms value compared with the same period in 2005. According to media reports approximately 56 leather garment manufacturing plants have already closed down as they were unable to compete with other regional producers such as India.