Secretary Commerce calls meeting of stakeholders of Leather Industry to discuss problems faced by the industry

Lahore, July 10, 2013 (PPI-OT): The Secretary Commerce Mr. Qasim Niaz has called the meeting of all stakeholders of Leather Industry to discuss the problems of this important sector providing jobs to about one million people across the country. The meeting has been fixed on the request of Pakistan Tanners Association. PTA is upset on Stagnant Growth for last 5 years i.e. 2007-08 to 2011-12 .

The growth rate of Leather Sector Exports was in minus and exports reduced to 14.09% as against positive growth in the region with 47%, 40%, and 102% in China, India, and Bangladesh respectively. Pakistan has lost 39% global market share whereas the global growth rate from 2007-08 to 2011-12 was 40%. The global share of Pakistan was 1.25% during 2007-08 in total global market size of US$ 98 Billion.

The global market has grown to US$ 137.96 Billion during 2011-12 whereas Pakistan exports reduced by 14% during this period. As against total exports of Leather Sector US$ 1.220 Billion during 2007-08 the exports recorded during 2011-12 were US$ 1.048 Billion. It is strange that the country rich in livestock has just 0.76% global market share as against global share of 37.50%, 13%, 6%, and 3.50% for China, Italy, Vietnam and India.

The governments of these countries are paying special attention to Leather Sector of their respective countries being labour intensive and providing jobs to weaker section of the society. India alone has injected Indian Rupees 400, 913, and 1251 crores under 10th, 11th, and 12th Indian Leather Development Plans.

Indian Government is working in close coordination with council of Leather Exports of India like Leather Sector Business Promotion Council in Bangladesh. On the other hand under STPF-2012-15 Leather Export Promotion Council was formed without any single initiative by the government during last one year.

PTA has been requesting time and again the government for “ PRIORITY STATUS ” of the sector but except announcement of Leather Export Promotion Council there is not a single practical step towards uplift of the sector. Contrary to this the government has withdrawn facility of subsidy on participation in International Fairs.

The subsidy amount was paid from the sector’s own funds collected under the head of EDS at the rate of 0.25% from each export consignment. The another major reason for decline is said to be energy crisis which has hit all sectors in general but leather sector in particular being continuous process industry. Export of Wet Blue Leather is another important factor retarding growth of our leather sector.

Law and Order Situation, Impact of War on Terror, Increasing Cost of doing Business and wrong policies of FBR are major irritants hampering exports of Leather Sector. The government has withdrawn subsidy on setting up of Effluent Waste Water Treatment Plants allowed under STPF-2009-12. Immediate corrective steps need to be taken to halt stagnation and decline in exports in last five years.

For more information, contact:
Moinuddin Quraishi
Pakistan Tanners Association
46-C, 21st Commercial Street,
Phase II, Extn., Defence Housing Authority,
Karachi-75500 –
Tel: +92-21-35880180, 35880184, 35899819,
Fax: 92-21-35880093

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