25pc freight subsidy for leather garments

Published January 5, 2005

ISLAMABAD, Jan 4: The Board of Administrators, Export Development Fund (EDF) here on Tuesday approved 25 per cent freight subsidy on air and sea shipments of leather garments from January 1, to December 31, this year.

The decision in this regard was taken the 39th meeting of the board presided over by Commerce Minister Humayun Akhtar Khan. Secretary Commerce Mr Tasneem Noorani also attended the meeting.

It is expected that this relief to the leather garment sector would stop the declining trend in the export of Pakistan leather garments. The board also approved funding for installation of two Computerised Pattern Making Machines one each at Karachi and Sialkot offices of Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA) costing $52,050.

Presently most of the leather garment exporters are using manual pattern making methods which restrict improvement in quality of garments. It was noted that the installation of these machines would boost the exports of leather garments from Pakistan.

Similarly the board approved installation of two Computerised Embroidery Machines one each at Karachi and Sialkot offices of PLGMEA costing Rs9.56million. The use of Computerized Embroidery Machine is the latest trend in leather garments and textile industry.

The board was of the view that installation of such type of machines would make leather garment sector more competitive. An amount of Rs14.1million was approved for Fan Development Institute (FDI) at Gujrat.

Out of this amount, Rs1.8million would be spent on expansion of already existing building and Rs12.3million would be spent on the purchase of machinery. The export of the country's fan industry at present stands at $20million and had been registering a 100 per cent export increase for the last three years, the meeting was told.