Stiff competition in the world market coupled with government's negligence have brought about decline in the export of leather products by 34 percent during the first nine months of the current financial year.
Leather industry is considered amongst the country's major industries, which has also fallen flat to continued regressive export trend due to high cost of production leaving it paralysed against its competitors in the world market.
According to official Statistics, during the first nine months of the current fiscal year July-March, exports of the leather products stood at $369.296 million as compared to $556.474 million during the corresponding period last fiscal, denoting decline of 34 percent or $187.178 million.
March 2007 statistics of export also witnesses a decline of 41 percent. During March 2006 country's leather products exports remained at $34.518 million as compared to $58.872 million during the same period of the last fiscal year 2005-06, depicting a decrease of $24.352 million.
Leather industry is not able to yield a positive growth in the existing unfavourable circumstance due to high cost of production and redtape, said Chudary Ahmed Zulfiqar Heyat, Chairman Pakistan Leather Garment and Manufacturer Association (PLGMA).
He said that exporters are faced with numerous difficulties in the local and international markets, which resulted in the decrease of the export of the leather products. He attributed the continued decline in the export of leather items to the unfriendly government's policies and lack of assistance from it.
"We have demanded some incentives from the federal government for the revival of leather industry in the country, which have not so far been fulfilled," he added.
Leather garment exporters have demanded six percent assistance in the context of the Research and Development (R&D) and 50 percent reduction in export refinance rate, in addition to 75 percent designing cost for the revival of industry to resolve the existing problems, he said. He demanded that the government's proposed textile relief package should be given to all industries to boost export.
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