Fawad Ijaz Khan, chairman, Pakistan Leather Garments Manufacturers & Exporters Association (Plgmea), has thanked Prime Minister Shaukat Aziz and Commerce Minister Humayun Akhtar Khan upon imposing 20 percent export duty on raw hides/skins & wet blue leather.
The Association had raised this demand during the leather sector meeting at Ministry of Commerce on September 3, 2004 but then the ministry rejected Plgmea proposal quoting that WTO rules do not allow such restrictions on import or export. This duty has been imposed after the Association's presentations and consent of all stakeholders in the leather industry.
Fawad said: "Presently the exporters of leather garments & leather products are facing shortage of the essential raw material in the local market due to excessive export of wet blue leather. Most of this export is to China, which is our main competitor. Chinese exporters are using our raw hides/skins & wet blue leather to produce value added leather products."
Fawad further stated that due to this shortage the prices of raw hides/skins & wet blue leathers in the local market have been rising sharply and it has been becoming difficult for leather garment exporters to compete in the international market or fulfil their export orders. As a result of shortage of leather, the garment factories have to import more leathers.
Fawad hoped that the exports of leather garments and other leather products would increase after imposition of 20 percent duty on export of raw & wet blue leather.-PR