PLGMEA hails SBP for relief in export

Karachi: The Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) has lauded the State Bank of Pakistan (SBP), s export relaxation for leather garment exporters.

In a press release issued on Saturday, the founder Chairman, PLGMEA, Fawad Ijaz Khan lauded SBP's decision to allow export relief to the leather garment exporters for the fiscal year 2006-07, `keeping in view the decline in export'. He pointed out that a PLGMEA delegation had met the Governor SBP, Dr Shamshad Akhtar, last month and apprised her of the problems being faced by the industry.

Khan said that Akhter and her team of experts had diligently listened to their problems and assured to help out the industry from prevalent crisis like the SBP did earlier too.

He said that the SBP has allowed relief to the industry in Part 1 loans as well as Part 11 loans. In case of Part 1 loans the leather garments exporters will repay loans by effecting up to 75% of shipments instead of 100%.

Under Part 11, the required performance target for financing has been reduced to 1.5 times from the earlier 2.0 times. In failing to meet the new criteria the leather garment exporters will be charged only 75% penalties.

Exporters who have failed to make 100% shipments against their targets can benefit from the relaxation granted. Khan further requested the SBP to consider 45 days extension in shipments against Part 1 loans also since many exporters have already made 100% shipments against the loan value that were effected with a little delays.

He also requested the SBP to encourage exporters to get better performance. The chairman, on behalf of the leather garment industry expressed gratitude for granting the much-needed relaxation and was hopeful that the industry will be able to come out of crisis with the facility extended by the SBP.