KARACHI, Oct 18: The Pakistan Leather Garments Manufacturers and Exporters Association (Plgmea) has drawn the attention of the government towards persistent fall in the value of European currencies, particularly euro and pound sterling against the US dollar, which has caused severe harm to exports of leather garments.

In a statement chairman Plgmea Fawad Ijaz Khan said that the value of euro depreciated by almost 15 per cent, whereas pound declined by around 12 per cent. Exports of leather garments to the EU member states were badly hurt and the exporters selling their goods in dollar are also being asked by their buyers to reduce their prices quoted earlier.

Mr Khan said that at present, many exporters of leather garment were getting repeat orders of this autumn and winter as well as fresh orders for spring 2009 seasons but they are facing problem owing to high input cost and currency parity, which is eroding their profitability.

He said prices of raw materials had also increased tremendously, particularly of cow, buffalo hides and sheep and goat skins. The main reason of this increase in prices of leather is that the export of leather is executed in US dollar, he said adding that export of finish leather in coming days will further increase.

He apprehended that export of leather garments will decline significantly during coming months due to weak EU currencies and the worldwide recession.