KARACHI, July 26: Federal Finance Minister Shaukat Aziz on Friday underlined the need of striking a balance in the promotion of the leather and leather garments’ sectors to ensure better economic prospects for the country and its people.

Talking to reporters after a meeting with a delegation of Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA), led by its chairman Fawad Ijaz Khan at the premises of State Bank of Pakistan, Shaukat Aziz said that the issues concerning the leather and leather garments’ exporters would be taken into consideration into totality.

He said one segment cannot be ignored to the benefit of the other but emphasis should be on the long-term planning and accumulative impact on the economy.

He maintained that the leather garments sector is very important for the economy as it is a source of employment generation and can bring in more foreign exchange through exports of the value- added goods in the form of garments, shoes, gloves and other made-ups.

He said Pakistan enjoys credibility in the world market for exporting higher quality finished leather and promotion of the value- addition can multiply the benefit of this credibility and export avenues.

To a question about the impact of borrowing of provinces from the international donors on the national economy, the minister said NWFP and Sindh had started foreign buying and now Punjab was also looking for such assistance. He said that there would not be any negative impact on the overall economy of the country as the federal government would continue to monitor the assistance and their utility.

He explained that 40 per cent of such assistance will be utilized for retiring expensive loans and rest will be used for initiating development work on various schemes. The assistance will go a long way in generating economic activity in the provinces and get them rid of expensive loans with the financial assistance for which marginal service charges will have to be paid by them.

Earlier, while making a presentation to the Minister, the Chairman of PLGMEA demanded imposition of 20 per cent export duty on export of semi-finished (natural/dyed crust) and finished leather. They argued that due to export of top quality leather, the leather garment manufacturers fail to get the higher quality leather in the local market to make leather garments. This resulted in a loss of faith in the ability of Pakistani manufacturers to deliver leather garments of top quality leathers on time, he added.

The availability of top quality leather will make the garment exporters to invest heavily in their tanneries in machinery, chemicals and technology.

Chairman of the Association said China which is exporting 7 per cent finished leather against 39 per cent of Pakistan, exports 93 per cent value added goods, compared to only 61 per cent of Pakistan.—APP