October 17, 2002	Thursday	Sha'aban 10, 1423

KARACHI, Oct 16: Export of leather garments registered a steep decline of around 29 per cent during the 12 months period from October 2001 to September 2002 as compared to the corresponding 12 months period of last year.

The decline in September 2002 was around 53 per cent as compared to September 2001. And decline in exports during July-Sept this year was nearly 43 per cent compared to July-Sept of 2001.

Fawad Ijaz Khan, chairman, Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA) in statement issued on Wednesday, said that the association had been predicting this decline in exports since November 2001 and brought it to the notice of the authorities concerned for taking precautionary measures to check the downfall.

However, the callous and indifferent attitude of the authorities has resulted in decline in exports of leather garments and as a result massive shutdown in the industry has rendered around 20,000 workers jobless.

He warned that if the government does not pay heed to the suggestions of the industry for arresting the declining trend, another 10,000 workers will inevitably lose their jobs in the next two months. Most of the leather garments exporters are facing liquidity crisis and don’t have enough funds to pay salaries of workers and mark-up on bank loans.

Fawad assured that there is still a considerable demand for leather garments in the international markets but they can only capture those markets if their prices are competitive and lower than their main competitors like China.

The PLGMEA chief requested the ministry of commerce and finance to hold urgent meetings with the representatives of the leather garments.