Fawad Ijaz Khan, Patron-In-Chief of Pakistan Leather Garments Manufacturers and Exporters Association (Plgmea), has urged the federal government for a comprehensive incentive package for the entire export sector. He said that it was learnt that the federal government is planning to give an incentive package worth billions of rupees only to the textile sector. Incentive package for a particular sector will be discrimination with other sectors as not only textile but several other exports have posted declining trend during the last year, he added.
Fawad mentioned that the exports of leather garments have declined by 12.35 percent from $366 million to $320 million during the last fiscal year (FY16) as compare to same period of FY15. Even, the leather exports are still witnessing declining trend and down by 8.5 percent during July-August of FY17 as compared to July-August FY16, he added.
"Exports are primarily declining due to the high cost of production in Pakistan and overvaluation of Pak Rupee against foreign currencies. The exports are badly hit especially in the UK, where the value of Pound has gone down by around 25 percent during the last few months," he mentioned. PLGMEA Patron-In-Chief said that it seems that federal government is not sincere in reviving the declining exports of Pakistan. Fawad said that the incentive announced in the Trade Policy of 2016-18 of 4 percent incremental Rebate on Leather Goods Exports is of no use because presently exports are down for most of the exporters.-PR
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