US leather garment importers have cancelled orders to Pakistan worth several million US dollars following the terrorist attacks on New York and Washington.
Pakistan exporters are also facing difficulties with shipping cargo to other cities as some of the leading airlines such as Air France, Lufthansa and Saudi Airlines are not taking cargo from Pakistan to various destinations in the US.
Negative effects have started emerging on exports of finish leather and leather garments as foreign buyers have either stopped placing new orders or drastically reduced the quantity, fearing non-delivery of goods if war breaks out in the region, a leading exporter of leather garments told Leather International.
‘The government is pre-occupied with taking measures in the aftermath of the terrorist attacks in New York and Washington, but Pakistan’s export trade is suffering badly’, he said.
Local insurance companies have also started asking for higher premiums because of the increased rates being sought by other insurance companies around the world. Foreign buyers are also pressing for lower prices in order to minimise their risk and are also seeking delivery of goods in the shortest time possible.
Exporters have suggested that the government should immediately take note of the fast deteriorating situation and take remedial measures to save the country’s economy.
