The Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) has demanded preferential rates for exporters of finished leather goods. The demand has come in the wake of difficulties in counterbalancing export and import transactions. In a meeting with the Governor of the State Bank of Pakistan (SBP), the association said exporters of finished leather goods should be given loans on lower rates. They said the reduced mark-up rates on ERF Loans for exporters of finished goods should be at 3 per cent, whereas exporters of raw material and semi-finished products should be made to pay 6 per cent.

Chairman of PLGMEA, Fawad Ijaz Khan, said the export business provides employment opportunities to a good number of people in the country. He raised concerns, about financial transactions with one of the country’s major trading partners, Iran. Pakistan is carrying out transactions with Iran in Dirhams, owing to the ban imposed on Iran by international fraternity. Iran makes a large part of finished leather import to Pakistan. The SBP has said that the normal trade with Iran will continue once international sanctions are lifted after February 2016. The association has also asked for four per cent incremental rebate for the leather garments and exporters of leather goods.