More than 50 export-oriented leather-garment units have shut down their operations and have completely rolled back their Rs 2 billion investment after failing to compete with their rivals in the world market.
Industry sources told Business Recorder on Sunday that some 56 leather garments exporters, including last year''s top exporters, have closed down their units during last one-and-a-half years due to higher cost of production and price uncompetitiveness on the international front.
In the country''s textile industry, leather garments stand at Number three in exports. However, during the last two years, competition in the international market increased and Pakistan''s exporters have been facing difficulties to compete with their rivals in the region, sources said.
Before closure, some 464 leather garments units were operating in the country, which number has now come down to 408 units. Of the 56 unit, 36 units have closed during the current calendar year.
"Out of total units closed, 27 units were from Karachi, 13 from Sailkot, five from Lahore, one from Gujrat, one from Sahiwal, and one from Charsada," said a Karachi exporter.
On average, Rs 300 million is the cost of a small unit and a large scale unit costs Rs 500 million to set up. So, with the closing of these units, around Rs 2 billion investment had been rolled back, sources added.
ACCORDING TO SOURCES, FOLLOWING LEATHER GARMENT UNITS HAVE BEEN CLOSED: Nasco Copration Karachi, NBZ Karachi, Ledler Fashion Karachi, Shaikh Brother Karachi, Bakos Barrech Karachi, Revoni& Company Karachi, I.I Leather Karachi, Imperial Leather Karachi, Mariam Garments Karachi, Euro Leather Karachi, De Lucchi Garments Karachi, Pak Apparels Karachi, United Garments Karachi, Hyderi Garments Karachi, Ghazi International Karachi, M.F Corporation Karachi, Principle Leather Karachi, Swift International Karachi, Shakz Leather Karachi, Ashraf Leather Products Karachi, Paskin Outerwear Karachi, Rehmat Tanneries Karachi, Skincrafts Karachi, Friends Traders Karachi, Raw Skin International Karachi, Skinplus Karachi, Mohsin Garments Karachi, Mana Leather Karachi, Nasir Trading Karachi, Challeenge sports Sailkot, M.H Challenged Sailkot, Skin Trend, Aslam Qazi Com, Faisal Khalid corporation, Ace International, Miraj Mehra Sailkot, American Iron Horse Sailkot, Bashir Leather Sailkot, Akaso Sailkot, Ramzan Tanneries Sailkot, PTN Lahor, Al-Karam Lahore,Shahid Imran Muridke, ITI Lahore, Hamza Tanneries Sailkot, Leather Gold Sailkot, Shiekhan Taneries Sailkot, Zia Tanneries Sailkot, Daiko Sailkot, Ali latif Sailkot, Ittehad Impex Sailkot, Ahu Gujarat, Bismillsh Tanneries Lahore, Aziz Tanneries Sahiwal, Tariq Tannerie Dina and G.M Tannries charsadda have closed their operation completely and rolled back their investments during the said under-discussed period.
During first five months of current fiscal year (2006-07), exports of leader garments have been declined drastically, by around 51 percent compared to corresponding period last fiscal year.
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