KARACHI, Dec 17: Export of leather and leather goods registered a steep fall of around 33 per cent during the month of November 2002, thereby extending the declining trend which gripped the industry’s exports since the 9/11 incident.
According to official figures export of leather and leather made-ups during the month stood at $120.075 million compared to $179.990 million in the corresponding period last year.
Similarly, in October 2002 exports declined by 18.30 per cent at $165.140 million as against $202.130 million in the same month last year. In September 2002, the fall was at 13.35 per cent at $181.220 million compared to $209.140 million in the corresponding period last year.
Pakistan Tanners Association (PTA) chairman S M Naseem has expressed his concern over the continuous declining trend and urged upon the government to immediately take notice of the alarming situation.
Besides, other factors, he said the global recession, lack of export orders, unfavourable exchange rates and revision of duty drawback rates for leather on lower side as announced from August this year have a dampening effect on the industry.
He stressed upon the government to take necessary remedial initiatives in providing due relief to the leather exporters especially of finished leather, so as to save the industry from collapse.
The PTA chairman said that orders from manufacturers have declined tremendously and presently only 20 per cent of the capacity is being utilized.
He said that a delegation of PTA is meeting the commerce minister on Wednesday, to apprise him of the difficult situation and seek remedial steps to keep the wheels of tanning industry moving.
Among other things, S M Naseem said PTA will also discuss increase in duty drawback rates, further reduction in export finance rates, issue of delay in getting sales tax refund and cumbersome new procedures of filing refund claims.
The PTA will also ask the minister to withdraw export development surcharge for a period of one year starting from January 2003, he added.
