State of emergency makes exporters nervous
The arrest of hundreds of opposition supporters and General Pervez Musharraf’s decision to impose a state of emergency in Pakistan on November 3 has caused serious concern amongst the country’s exporters, including those in the leather sector, who believe that the situation will send out the wrong signals to foreign buyers.
Fawad Ijaz Khan, chairman Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) said that exports of leathergoods were finally showing signs of improving after having suffered a severe downturn in 2005/06, but that this positive trend would be jeopardised if foreign buyers were not free to enter the country in order to place purchase orders.
Pakistan's leather sector exports reached $82.638 million in September, up 1.005% to from $81.816 million in August and by 1.07% compared with September 2006 ($83.534 million).
Meanwhile, in stark contrast to the PLGMEA’s standpoint, chairman of the Association of Trade and Industry (KATI) in Korangi, Masood Naqi, claimed that the state of emergency would help to stabilise the highly uncertain political situation in the country at present, adding that this was vital in order for business and trade to grow.
