The government's decision in increasing the electricity tariff by 10-percent would certainly have a negative impact on the footwear sector. According to Pakistan Footwear Manufacturers Association (PFMA) Chairman Khawaja Muhammad Ali.
This sector is already trying to maintain its sales in the international market in view of tough competition from China, Bangladesh, India, Vietnam, etc, whose governments provide a lot of incentives to their shoe manufacturers.
He said foreign purchase orders were obtained six months in advance keeping in mind the prevailing rates of utilities at that time. "Any sudden increase with immediate effect could turn the profits into losses, thus discouraging the footwear exporters," he added. He appealed to the government to withdraw this increase immediately so as to save the footwear sector from collapse.
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