KARACHI, May 9: Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) chairman Fawad Ijaz Khan on Thursday refuted the claim of PTA that the imposition of export duty on finished leather is against the country’s interest.

In a press release, he pointed out that leather exporters in Pakistan have been enjoying protection of 20 per cent export duty on the export of raw and finished leather for many years. In fact the government has given protection by imposing export duty and that is why the leather exporters were able to export finished leather in a big quantity in the past.

Mr Fawad also refuted the claim of PTA that the export price of leather garments are low and pointed out that on average export price of leather garments from Pakistan is much higher than the average export prices of India and China.

The PLGMEA chief maintained that if all the finished export is converted into leather garments, Pakistan will earn minimum 30 per cent more foreign exchange than being earned from export of leather and in addition to this, 40,000 direct labour force and a similar number of indirect force will be benefited.

He said loss in production of leather garments was much more than the production and export of leather. The export of finished leather increased from $155 million to $167 million during period July-March 2001-02 compared to the corresponding period of last year, registering an increase of around seven per cent, while the export of leather garments has declined from $286 million to $244 million during the same period of July-March 2001-02. This is a decline of 15 per cent over the corresponding period.

The PLGMEA chief said the quality of leather garments from Pakistan was much better as compared to the competitor countries, including India and China.

He felt that the rates of the duty drawback should be higher than what the government is presently allowing.

PLGMEA chief stated that he presented a case to the commerce minister about the imposition of 20 per cent duty on export of semi-finished and finished leather and the association feels that its case is strong and the government will soon impose export duty in the larger interest of exports as well as the country.