March 18, 2007	Sunday	Safar 28, 1428

KARACHI, March 17: About 56 units of leather garments closed down during last two years owing to tough competition faced in the world market from the Chinese and Indian exporters, who have an edge of around 14 and 10 per cent, respectively, over Pakistani products.

This was stated by former chairman Pakistan Leather Garments Manufacturers & Exporters Association (Plgmea) Fawad Ijaz Khan here on Saturday. He said that the Plgmea had already submitted to the government details of costs involved in manufacture of leather garments.

Mr Khan said that the cost difference of many items used in manufacturing of leather garments vis-à-vis China were also submitted to the government. At present, the cost of chemicals is higher by 0.74 per cent, accessories and trims 4 per cent, and labour 1 per cent, apart from higher cost of gas and electricity.

He said that the international buyers of leather garments were big departmental and fashion stores. They offer their target price to Pakistan, India or China. Most of the leather garment exporters are trying to reduce their cost but some cost reductions are not in their control.

Despite the fact that technology of leather and designing in the regional countries including Pakistan is the same but “our exporters could not get better price for their products”. He further said that under the circumstances it was not possible for the industry to survive and in next couple of years more closures will be witnessed.

Mr Fawad demanded that if the government wanted to save the leather garment industry it would have to come forward with a relief package, which should include 6 per cent Research and Development support, 5 per cent allowance for duty free import of accessories, freight subsidy, reduction in export refinance mark-up, establishment of leather garment cities at Karachi, Lahore and Sialkot.