KARACHI, Nov 7: The leather garment exporters have asked the government to provide export finance at zero mark-up for at least second quarter of current fiscal to arrest rapidly declining exports of value-added leather goods.

Addressing newsmen soon after being elected as chairman of the newly-formed Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA), Fawad Ijaz Khan said that during September 2001 there had been 26 per cent fall in leather garment exports.

He said that the rate of mark-up on export refinance loan for Oct-Dec 2001 should be zero per cent and subsequently it should be 3 per cent from Jan 2002, onwards.

The chief of the newly-formed trade body, whose promoters had been fighting for its permission since 1994, to safeguard their interest which were not being properly looked after by the existing Pakistan Tanners Association (PTA), appreciated the government decision for not further slashing duty drawback rates as planned from Jan 1, 2002 and April 1, 2002.

However, Mr Fawad demanded of the government to restore the original rates of duty drawback prior to June 30, 2001, for export of leather garments.

Similarly, he said accessories imported by leather garment manufacturers and exporters under different SROs should be simplified as the present cumbersome procedure was difficult to follow.

Fawad emphasized the need for improving the image of leather garments made from Pakistan in the world market and suggested that fashion shows should be arranged during Pakistan’s participation in the international trade fairs. There should be single country exhibitions and professional organizations in the respective countries should be hired to make these exhibitions successful.

The PLGMEA chairman said that the State Bank should keep the exchange parity of the US dollar to minimum of Rs62 for the next three months to give stability to the export trade.

After the incident of Sept 11, he said, the international media was portraying a very negative image about Pakistan. “It is important that our government should make all out efforts to counter this propaganda,” he maintained.

He said the export development surcharge was levied for the establishment of training and research institutes. Since the national institute of leather technology is already established there is no need of continuation of this export cess, Fawad Ijaz asserted.