Export of leather decreased by 37 percent

23 Jan, 2010

Chairman Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) Choudary Zulfiqar Hayyat has said that the export of leather has decreased by 37 percent due to load shedding of electricity and gas and if the situation exists it will reduce further.
Addressing a meeting of executive body PLGMEA North Zone here on Friday he said that under prevailing situation it would be difficult to achieve export target. Choudary disclosed that due to lack of good governance and current circumstances the business community has started shifting its business to Bangladesh.
The PLGMEA disclosed that leather industry was earning more than 500 million dollar annually while over 4 lakh workers were engaged in the industry. The government should formulate a strategy for getting rid of unscheduled electricity load shedding, he said. Sialkot is city of small and medium industries but it had been facing 15 hours load shedding because of which the cost of production increased to many folds, he pointed out.
Choudary disclosed that per unit cost is Rs 25 to Rs 30 by acquiring electricity while through generators it was an extra burden on the industry adding that this would ultimately ruined the industry. Speaking on the occasion Chairman PLGMEA (N Z) Sheikh Muhammad Yaqoob said that due to load shedding most of the industrial units were near to closer which would ultimately generate unemployment and crime rate in this export-oriented city.
He urged upon the government to pay all outstanding dues to IPP for ensuring smooth electricity supply in the country. He also called upon the high ups of the government to come out from the issue of NRO and resolve the real problems faced by the industry.

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