Rising costs, but production capacity and orders up too
10/07/2008
Pakistan’s footwear industry has increased its production capacity by between 20% and 30% in recent months. Factories’ order books are in a healthy state and production is reported to be at 80% or 90% of capacity.
Aqeel Sattar, assistant marketing manager of Firhaj Footwear in Lahore—which has exclusive rights to manufacture Hush Puppies in Pakistan, and distribution rights for Caterpillar shoes—confirmed these figures in conversation with footwearbiz.com at the recent Juft 2008 exhibition in the city.
However, Mr Sattar also pointed out that the cost of production was rising too. Rising oil prices were putting the cots of chemicals up, he said, while energy costs in Pakistan are already high and still rising. He urged the government to increase the rate of export rebate companies in the manufacturing sector can claim.
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