Fawad Ijaz Khan, chairman of the Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) has asked the State Bank of Pakistan to allow customers to defer the mark-up of Export Refinance loans for a year and to reduce the mark-up for leather garment exporters in 2009. It believes these actions are a necessary response to the global financial crisis and the decline in exports.

A PLGMEA delegation led by Mr Khan met SBP governor, Syed Salim Raza, to discuss the industry’ problems. He explained that leather garments are a high-added-value export and that export figures have declined rapidly since November.

Mr Raza suggested that the bank may consider loan deferments but will not agree to reduce the mark-up amount.

Share this story: