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Govt faces criticism over rise in petroleum prices
Nov '10
The Pakistan government is facing strong condemnation from Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA) for raising the rates of petroleum products by around nine percent. The already ailing export sector is confronted with a number of issues including that of acute power cut, deteriorating law and order conditions and rising prices of raw materials.

Also, the government's decision of raising the rates of petroleum products has further distressed the industry, because petroleum product prices straight way influence the cost of fuel required to run generators which are greatly required by the factories as most of the time they have to face power cut.

Moreover, as most of the times the garment units provide transportation facility to their workers, this rise in prices of petroleum products would certainly raise the transportation cost. Also, the leather garment factories use some of the chemical solutions which are obtained from petroleum products, due to which the production cost is bound to rise.

Further, a year-on-year hike of 50 percent in leather exports during the third quarter of the current year, has greatly elevated the prices of leather garment exports. Meanwhile, massive floods in the country have also claimed lives of a number of animals, leading to scarcity of raw hides and skins.

If this price rise persists in such distressing proportions, it is likely to compel the leather industry to cease its operations, as the leather units then would not be in a condition to compete in the global market.

Fibre2fashion News Desk-India

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