KARACHI, Aug 16: Pakistan Leather Garment Manufacturers and Exporters Association chairman Fawad Ijaz Khan on Saturday urged the governor of State Bank of Pakistan to allow forward cover facility against imports by exporters.

In a statement, Mr Khan said that leather garment manufacturers and exporters were importing their requirement of accessories, chemicals and leather for re-export. However, most of the times currencies in which they import do not match the currencies in which they export, therefore, some exporters use forward cover facility to book their exchange requirement as a hedging mechanism.

The SBP had disallowed forward cover facility against imports in July vide its FE circular No 8. Mr Khan said during the last few months, value of currencies had seen a significant fluctuation, which had aggravated the financial risk of exporters.