Government is contemplating extending six percent Research & Development (R&D) support to leather garment sector as exports have continued their slide.
Acting on the persistent demand of Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA), Export promotion Bureau has moved a proposal in this regard to Ministry of Commerce.
PLGMEA was advocating for this move as they faced tough competition from China in low-cost leather segment. It was demanding R&D support for research and development in the areas of information collection, modernisation of garment designing, quality improvement and use of new and better accessories.
Garment exporters say that due to higher cost of production, they can not stand against China. They said that garment industry was facing problem of high labour and utility cost.
Leather export has decreased by 15.63% during the first two months of current financial year. Earnings from leather sector dipped to US$43.089 million from $51.070 million during July-August period compared to same period last year.
Drop of 42.51% was seen in leather manufacturers, 40.15% in leather garments and 32.76% in leather footwear was seen during the same period.
