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Wetblue shortage affects Pakistan's tanning industry
Apr '12
Pakistan's tanning industry, the second largest foreign exchange generating sector of the country, is facing acute shortage of wetblue – tanned leather sheet, as these are being unprecedentedly exported through mis-declaration and under-invoicing.

The reduced availability of wetblue is severely impeding the growth of Pakistan's leather products manufacturing industry over the past few years.

Pakistan Tanners Association (PTA) former Chairman, Agha Saiddain, suggested that in order to ensure adequate availability of wetblue to the domestic industry, the Ministry of Commerce (MoC) should keep an eye on its outflow.

Owing to high demand in world markets, huge stocks of Pakistani wetblue are exported after mis-declaration and under-invoicing, he said.

Mr. Saiddain suggested that the Government should review the situation and completely ban the export of wetblue, or raise the duty on the same from the current 20 percent to 50 percent.

Such a hike in duty would put a break on bulk exports, and the domestic industry would then have enough stocks to cater to their raw material requirements, he said.

Over the past two years, PTA has made several efforts to appraise the MoC and Federal Board of Revenue regarding the severity of the situation by writing letters, however, nothing has transpired on this front.

In order to meet the requirements of domestic leather industries, countries like India, Brazil, China, Bangladesh, Iran, Egypt and some African nations have already banned export of wetblue.

Fibre2fashion News Desk - India

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