KARACHI, April 16: The Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) has urged the government to allow 5pc compensatory rebate on export of leather garments for the year 2005. PLGMEA Chairman Fawad Ijaz Khan in a statement issued on Friday said that it was a welcome step that the ECC had allowed a 6 per cent compensatory rebate to textile garment exporters to help them maintain their share in the EU market.
He requested Prime Minister Shaukat Aziz and Commerce Minister Humayun Akhtar Khan to allow 5 per cent compensatory rebate to leather garment exporters.
The export of leather garments declined by 28 per cent to $132 million during the first quarter of the current fiscal year as compared to $185 million during the same period of last year.
He also welcomed allowing of 25pc freight subsidy on export of leather garments. However, he said that the impact of this subsidy was around 1 per cent of the FOB export value and was not sufficient to offset the high cost of leather garments manufacturing in the country as compared to our competitors like China.
