SIALKOT, Feb 26: The leather garments industry of Sialkot was facing severe crisis as dozens of small-scale factories have been closed down due to increase in air and sea freights, reduction of rebate ratio and levy of $150 per container as war risk charges.

This was stated by senior vice-chairman of Pakistan Leather Garments Manufacturers Exporters Association, Zulfiqar Hayat and ex-chairman of Sialkot Dry Port, Shaikh Ahmad Hussain, while talking to newsmen here.

They said after September 2001, exports of leather garments from Sialkot have dropped to 63 per cent. No new orders had been received from the foreign buyers as they had already cancelled their previous orders. Thousands of industrial workers have become jobless.