SIALKOT, Jan 11: The mounting tension between India and Pakistan has caused heavy losses to local exporters.

This was stated by Pakistan Leather Garments Manufacturers and Exporters Association chairman Shaikh Latif in a press release issued here on Friday.

He said that a sharp decline of 63 per cent in exports had been recorded in Sialkot. The city used to earn 650 million dollars per annum, but under the given circumstances it could hardly be able to earn 250 million dollars, he said.

The Sialkot based exporters, he said, were under the burden of fixed overheads, especially export re-finance under part 1 and part II, adding that the mark up on these financing was increasing and piling up day by day.

Mr Latif said that exporters had no choice to meet the fixed overheads but to close their manufacturing units and laying-off their workers.

The government should enhance the duty drawback refunds besides fixing the dollar rate at Rs70 till the situation improved, he said.

He urged the EPB should be advised to give compensatory rebate at the rate of 3 per cent from the export development fund and subsidize the rates of electricity, gas and furnace oil used in the manufacturing of exportable goods till the time situation returned to normal.

killed: Two Indian armymen were reportedly killed when Chenab Rangers returned fire near the Sialkot working boundary’s Saamba-Shakargarh sector early Friday morning.

Official sources said the Indian troops had used heavy mortar shelling and artillery weapons, killing two goats and damaging several houses in villages in Chhumb Joriyaan, Bajwat, Saamba, Sucheetgarh, Zafarwal and Shakargarh sectors.

The enhancement in troops movement from both sides along the working boundary was also witnessed, they said.

The shelling between Chenab Rangers and Indian security forces was continuing till the filing of this report late on Friday evening.