LAHORE: The Export Standing Committee of the Pakistan Tanners Association (PTA), expressing the inability of their sector to bear the additional per-annum burden of Rs 180 million caused by an increase in minimum wages coupled with the increase in electricity and gas tariffs, has asked the federal caretaker minister of commerce to look into the situation and discuss a way out with the leather industry.
PTA Export Standing Committee Chairman Agha Saiddain, in a letter to the federal minister of commerce, alleged that in South Asia according to Moody’s Survey Pakistan was the most vulnerable to the balance of payment crises having the lowest level of exports of 10.50% of GDP. With an increase of minimum wages from Rs. 25,000 to Rs. 32,000 PM, and an increase in electricity and gas tariff with ERF at 22% the government had put a collective burden of Rs 180 million on the industry having 600 workers on average presuming that the profitability of industry could absorb it and sustain. “We are telling you the truth that there was none in the leather industry making such huge profits to absorb this sudden landslide burden without allowing any relief to take this burden,” Agha added.
He said after the appointment of Federal Minister of Commerce in the caretaker government, exporters were relaxed and the whole sector was of the view that exports would increase to US$ 100 billion. However, the government policies had disappointed this sector as it had never faced such harsh measures in the history of the last 76 years.
Agha citing the huge increase in electricity and other tariffs in comparison to other countries of the region, questioned how could export sector grow in such an uncompetitive atmosphere and how the government enhance exports to US$ 100 Billion.
Copyright Business Recorder, 2023
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