PLGMEA seeks 20pc duty on hides export

Published February 22, 2005

KARACHI, Feb 21: The exporters of leather garments and leather products are facing shortage of essential raw leather in the local market. The Chairman, Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) , Fawad Ijaz Khan in a statement issued here on Monday said that the excessive export of raw hides/skins, split and wet blue leathers was creating problems for the exporters of leather garments.

Consequently, he said, the exports of leather garments had deceased by 28 per cent to $132m during the July-December period of the current fiscal year compared to $185m the same period last year, while the exports of leather had surged by 16 per cent to $135m from $117m.

Mr Fawad further stated that due to this shortage, the prices of raw hides/skin, split and wet blue leathers in the local market were rising sharply and it was becoming difficult for leather garment exporters to compete in the international market.

The PLGMEA chief pointed out that reduction in export of leather made-ups and increase in the export of leather was an 'alarming' situation and would inevitably lead to unemployment since leather made-ups sector was a labour intensive industry.

He suggested to the commerce minister to impose 20 per cent export duty on raw hides and skins/split and wet blue leathers to ensure availability of essential raw material to leather made-ups sector and save it from 'collapse'. -APP