KARACHI, March 13: Leather garment manufacturers have asked the government to immediately impose 20 per cent duty on export of semi finished and finished leather to ensure its availability to the manufacturers of value-added leather goods.

The exports of leather garments and other products during February 2002, declined by 45 per cent owing to higher cost of finished and semi finished leather, which is being exported at the cost of local value-addition leather industry.

In a recent meeting of the central executive board of Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) a similar demand was put forward by its members, seeking levy of export duty on semi and finished leather.

Exports of leather garments had been badly affected by Sept 11 incident as buyers from the West stopped visiting Pakistan because of security risk. Furthermore most of the airlines also cancelled their air freight services, thereby hampering leather garment exports.

Consequently, during Oct 2001 to Feb 2002, exports of leather garments declined by 27 per cent over the corresponding period last year. As against this export of leather during this period (Oct-Feb) jumped up by three per cent.

PLGMEA chairman Fawad Ijaz Khan said that prices of raw materials for leather garment had decreased throughout the world except Pakistan. Due to price difference of 10 to 15 per cent, he said, leather garment manufacturers could not compete in the world market.

Defending the proposal for the imposition of 20 per cent duty on leather exports, Fawad said when tanners were getting government protection on export of raw hides and skins then there was no reason as to why value addition garment industry should not get a similar treatment.

At present, he said, there was 20 per cent export duty on raw hides and skins, which were raw materials for tanners for their export of finished leather. Similarly, the raw materials for leather garment manufacturers is dyed and finished leather.

Fawad said that if US could impose 30 per cent duty on import of steel to protect its domestic industry, why Pakistan could not do the same to safeguard its industry.

The leather garment industry, he said, had the potential to consume and convert all raw leather, which was being presently exported to “our competitors in the world market.”

Although the average yield price of conversion from export of leather to local use for garments production will be reduced by around 10 per cent, the value addition by using the same leather into garment production will bring a value addition of minimum 30 per cent and create thousand of new jobs.