Leather garment production in Pakistan should increase after exporters received news that the state bank will make it possible for them to fund their export activity without having to seek part of the funding from the commercial banking sector.

Fawad Ijaz Khan, chairman of the Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA) thanked the governor of the state bank, Dr Shamshad Akhtar, for agreeing to the move.

Mr Fawad explained in a statement that commercial banks were making it difficult for companies in the leather sector to secure funding, applying a mark-up of 15% or more in some cases.

Exports of leather garments have increased by 7.5% in the period from July to September 2008.

Share this story: