Shahid Iqbal

▪ Second largest Export Earning Sector ▪ Contributes atleast 5% to manufacturing GDP & 8% to exports ▪ Tremendous Improvement for growth with Quality and diversification ▪ Exports increased $77 million in 1978 to $671 million in 2001-2002 ▪ Pakistan has a natural advantage in the area of livestock population ▪ The import of Hides are mostly not because of shortage but rather product specifications




• Manufactures in Pakistan make all that one could desire Our leather garments have exquisite features which give an exclusive touch to Pakistan's leather garments covering a broad spectrum of colors and shades. • • • . Share of value added goods in overall exports has increased. A wide range of products is produced by the industry.

 The Leather industry as a whole is broadly categorizer in three major areas: TANNERIES PROCESSING RETAIL    .

• Tanneries consume more than twenty different types of chemicals in large quantities for leather processing • Chemicals' manufacturers like BASF. as most of the tanneries are located in Korangi and Defence in Karachi • . have located their units in Karachi. Some clustering of the firms can be seen. Clariant and Bayer etc.

Chrome tanning is the most widely used method Wet finish: Dyeing and bleaching Finish: Dressing • • . those of animal origin. Tanning: Tanning agents are usually divided into three types.• • Pre-tanning: Tanning involves some form of bating. vegetable products and mineral salts . or chemical treatment of the raw hide.

It negotiates with Central and Provincial governments. . PTAs main thrust has been on securing maximum concessions from the Central Government.• • • • • PTA is the apex body of tanners & leather product manufacturers in the country. It has established National Institutes of Leather Technology and Combined Effluent Plant in Korangi Leather Cluster with the help of Export Promotion Bureau. It also organizes International exhibition in collaboration with Export Promotion Bureau.

As such Pakistan’s more then 60% exports comprise leather garments and leather goods.  PLGMEA. It represents Leather garments manufacturers that are exporters in the country. has been recently established (2001). .

 . Topfit Ltd. This association is dominated by big footwear manufacturers such as Services Industry. Bata Industry Elegent Footwear industry. etc. since the industry is mainly located in this city. PFMA is located in Lahore.

• PGMEA has it’s headquarter located in Sialkot. Most of its members are from Sialkot. Its total membership is nearly 200. It represents manufacturers of wide variety of gloves The associations like others associations have been trying to get incentives from the government • • .

politics. economics  Cost of production  Highest taxes. induced costs due to poor infrastructure  Energy Issues  Circular debt . Quality  Low quality as compared to competition  No new process adopted  Environment  Law & Order.


 Pakistan is confronted with various challenges to survive in international market  Hi-tech for quality products and availability of skilled manpower to cater to the needs of the world market  Comparison and cooperation with Korea .

 Good quality leather is mostly exported and is not available for high value-added Leather Garments & Leather Products  Leather garments in Pakistan are made mostly from low grade & medium grade leather stiff competition from Chinese & Indian products  .

 Very high in Pakistan as compared to our competitors like China and India. The high cost of various inputs especially utilities and taxes make our products uncompetitive in international markets.   Pakistan can capture the lost market share provided the industry is enabled to reduce cost of production .

Sweden. they will continue to place orders to the competitors. France. sharp decline was observed in markets for leather garments like Germany. .  local industry has to suffer in the backdrop of September 11 events was the noticeable shift of buyers from Pakistan. Japan and Russian States. Denmark.  buyers switched their production to India and China  Unless Pakistan offers some benefits to attract these buyers. Economies of the most developed countries faced slump after September 11 incident  loss of purchasing power of consumers was borne by high value items  Consequently.

the leather sector has the potential to fetch one billion dollar a year. Kenya. There is a trend in the organized tanning industry to convert into the cottage industry just to avoid heavy taxation. S. Dubai. The industry is meeting its 75 per cent needs of raw hides from local resources while rest of the 25-30 per cent is met through imports. Australia and Italy. Iran.M.    . Sudan. Chairman. Pakistan Tanners Association (PTA) feels that leather sector currently operating at least 20 per cent below capacity. Pakistan imports leather from Saudi Arabia. and China. if it is made to run to the capacity. Nasim.

.  Export Duty ‘Fox Furs’ are much in demand abroad  This should be removed from negative items list under import/export order  Establishment of a Leather Board in Pakistan  Headed by a person exporting value-added leather products  Value-added exports like leather garments where there cannot be any further value-addition should be exempt from Export Development Surcharge.

 The new potential markets identified by the exporters where major focus could placed for promoting leather garments are Poland. Japan and Russia. .

   . Footwear. the largest segment of the leather industry around the world has been surprisingly neglected in Pakistan. Made-in-Pakistan label and brands born in Pakistan have yet to come. Leather and Leather products from Pakistan have carved a respectable place in the world market. Pakistan's leather industry looks treading without shoes. Despite having a strong industrial base.

      Introducing Brand Names Control on Smuggling & Diseases of Livestock Tackling Environmental and Labor Issues Focusing on Footwear Sector Reduction of Duties on Machinery Research and Development: Quality differentiation .

S W ZWc \[`WZ`S S^W`_ VWZ`XWV T `W W \[^`W^_ cW^W S[^ X[Ua_ U[aV \SUWV X[^ \^[[`ZY WS`W^ YS^WZ`_ S^W [SZV S\SZ SZV a__S .

S WS`W^ SZV WS`W^ \^[VaU`_ X^[ S_`SZ SbW US^bWV S ^W_\WU`STW \SUW Z `W c[^V S^W` SVWZ S_`SZ STW SZV T^SZV_ T[^Z Z S_`SZ SbW W` `[ U[W [[`cWS^ `W S^YW_` _WYWZ` [X `W WS`W^ ZVa_`^ S^[aZV `W c[^V S_ TWWZ _a^\^_ZY ZWYWU`WV Z S_`SZ W_\`W SbZY S _`^[ZY ZVa_`^S TS_W S_`SZ _ WS`W^ ZVa_`^ [[_ `^WSVZY c`[a` _[W_ S S S .

S S S S S S Z`^[VaUZY^SZV SW_ [Z`^[[ZaYYZY_WS_W_[X bW_`[U SUZYZb^[ZWZ`SSZV ST[^ __aW_ [Ua_ZY[Z [[`cWS^WU`[^ WVaU`[Z[Xa`W_[Z SUZW^ W_WS^USZVWbW[\WZ`aS`  VXXW^WZ`S`[Z .

Sign up to vote on this title
UsefulNot useful