Leather Sector: Industry losing market share

KARACHI: The leather sector is fast losing its global market share to competitor
s due to sheer negligence by the government and its subsidiaries, said Pakistan
Tanners Association (PTA) South Zone Chairman Hamid A Zahur. Leather exports have
declined in volume by 28 percent during the current year and the cost of doing
business for the entire sector, including garments, gloves, footwear and finishe
d leather has gone up by 12 percent. He said the sector had lost competitiveness
in comparison with Bangladesh, India and China. Zahur said the low rate of duty
is hurting leather exports in Pakistan compared to regional countries as local t
axes, besides customs duties are not refunded. Export rebates in regional competi
tor countries are much higher than in Pakistan, plus, a weaker euro and devaluat
ion of dollar has been the final nail in the coffin for us, he added.