SIALKOT: Glove exporters and manufacturers have been facing a severe financial crunch due to an unreasonable delay in the settlement of Rs100 million duty drawback claims pending with the Federal Board of Revenue for a long period.

Pakistan Gloves Manufacturers and Exporters Association (PGMEA) Chairman Suhail Masud said the downfall of the industry began after the duty drawback rate was reduced to only 1.54 per cent from 12pc.

He urged the government to release the stuck up claims payments on an urgent basis and also increase the duty drawback rate to facilitate the manufacturers and exporters to compete with their rivals in China and India who are being extended maximum incentives by their governments.

Former chairman PGMEA Muhammad Anwar Butt said that high prices of raw leather and prolong power and gas outages have badly affected the local industry. `It has become very hard for us to compete with China and India in the international trade markets.