July 19, 2006	Wednesday	Jumadi-ul-Sani 22, 1427

KARACHI, July 18: Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) chairman Chaudhry Ahmed Zulfiqar Hayat has expressed his resentment over trade policy 2006-07 for ignoring the leather garment industry, which has been passing through its most difficult phase.

In a statement issued to the press on Tuesday, the Plgmea chief said that prices of raw material had gone high, while prices of products in the world market had come down due to tough competition from China, India and Turkey. He said that manufacturing cost had gone up due to the high cost of utilities (gas and power), thereby rendering the leather products uncompetitive.

Chaudhry Zulfiqar said there was a greater need for allowing research and development (R&D) subsidy to leather garments and leather goods to enable them stay viable in the world market.

He said that since long Plgmea had been pleading its case for R&D support to the industry and only a few days before the announcement of the trade policy a delegation of leather garments manufacturers had met secretary commerce in this regard and was given assurance of getting support from the government.

The Plgmea chairman said that leather garment industry was disappointed with the ‘step-motherly’ treatment accorded to it in the new trade policy. He urged the commerce minister to review the policy and allow six per cent R&D support to the industry. He said that problems confronting leather garment industry were similar to those of textile industry, therefore, it should also be included in the relief package.