Leather products, sports goods export plummet

KARACHI - The exports of leather products and sports goods slumped 27 per cent due to the government’s cold
shoulder response towards the industry, the Nation learnt on Thursday.
Reportedly, all the major buyers of these products have stopped buying such items from Pakistan on account of
the worst global recession. Resultantly, production of these items has been gone down around 40 per cent.
In contrast to Pakistan, neighbouring countries like China and India give 5 to 13 per cent rebate to support the
industry, while the reduction of 1 per cent withholding tax is only meant for the commercial importers.
Mohammad Danish Khan of the Korangi Association of Trade & Industries (KATI) while talking to the Nation,
suggested that what they need is a 25 per cent subsidies on all utilities, reduction in bank mark up to 3 per cent
for a period of 3 years instead of the current 7.5 per cent and a decrease in tax from the current 1 per cent level
to 0.5 per cent for two years.
He lamented that Pakistan’s share is only 1 per cent in 100 billion dollars market of leather and sports goods
and that too is on the decline. However, if rebate is increased up to 10 per cent across the board, which is
currently 1.25 per cent on leathers and 2.42 per cent on garments, it will be a great help to sustain country’s