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PLGMEA appeals to government

21/03/2007
 
The Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA) has urged the country’s President, Prime Minister, Minister of Commerce, chief executive of the Trade Development Authority, governor of the State Bank and chairman of the Central Board of Revenue to save the leather garment and leathergoods industry from a potential crisis.

Chairman of the association Fawad Ijaz Khan sent a letter to the government highlighting the industry’s plight, stating that the average cost of a leather jacket in the country is approximately 14% more expensive than its equivalent in China and 10% more than in India. He added that international buyers of leather garments have fixed prices and that Pakistan is unable to compete with these other countries despite attempts to reduce costs. He explained that leather design and the technology used is similar to that employed in India and China and so higher prices cannot be attributed to better quality goods.

Mr Khan believes that if the industry is to survive, the government must provide some form of relief package, including 6% R&D support, a 5% allowance for duty free imports of accessories, a freight subsidy, a reduction in export refinance markup and the establishment of leather garment ‘cities’ in Karachi, Lahore and Sialkot. He said that a copy of the association’s proposed relief package would be submitted to the government as soon as possible to prevent further closures within the industry, adding that in the last two years some 56 leather garment exporters out of approximately 300 have been forced to close.



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