The Pakistan Leather Garments Manufacturers & Exporters Association's (PLGMEA) Chairman, Fawad Ijaz Khan, has strongly denounced the State Bank of Pakistan's move to hike the Export Refinance Rate (ERR) by 0.5 percent. According to Khan, this rise in ERR would then boost the manufacturing cost for exporters.
The leather garment industry is in a fix over the dearth of hides and skins in the country, on account of heavy rains in the country. The floods have claimed lives of around one million cattle and have dislocated about 20 million of them, who are now starving for the want of grass, he said.
He further stated that, usually during this period the leather garment exporters make bulk purchases to stockpile for upcoming Autumn/Winter seasons. But this season, the buyers don't seem to be eyeing Pakistan for purchases, due to the deteriorating law and order conditions and also for the high cost of products, when compared with those offered by exporters from India and China.
Rise in the wages of workers coupled with rise in energy and gas charges and the recent hike in ERR have all together shot up their production cost, he said and thus, pleaded the State Bank of Pakistan's Governor to do away with this hike in the ERR.
Fibre2fashion News Desk - India
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