KARACHI, May 8: Pakistan Tanners Association (PTA) has taken strong exception to the demand made by the leather garment manufacturers and exporters of imposing a duty on export of tanned leather from Pakistan.

“The proposal from Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) to impose duties on finished leather is illogical and even unethical and contrary to the national interests,” Masood A Shaikh, the Chairman of PTA retorted in a statement on Wednesday.

He said that garment manufacturers enjoy the facility of duty free import of finished leather. Local finished leather is available at 10 per cent less price than the imported one.

“The fact is that Pakistani leather garment manufacturers are selling their garments at very low prices and competing the cheapest garment segment with their competitors in India and China,” the PTA Chairman said.

He questioned the garment manufacturers assertion of being a value-added sector when their “export earns lower amount of foreign exchange.” Masood Sheikh said that garment manufacturers thrive on incentives and subsidy in the shape of duty drawback rates.

The PTA leader perceives leather garment manufacturers “not being innovative and efficient” because of their dependence on the incentives and subsidy.

“Out of 20 top leather garment exporters, about 12 have their own tanneries and remaining have arrangements with their affiliates to get raw hides and skins tanned and finished under their own control,” Masood Sheikh asserted while pointing out that the raw hides and skin market is dominated and controlled by the leather garment manufacturers who have created the situation that small tanneries are closing down and medium and large tanneries had to reduce their production.

The PTA leader has expressed support to the government’s market driven policy in matter of leather sector.