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Exports of leather goods witness fall
May '10
Within the last two years, the leather industry has witnessed an average fall of 25-30 percent in the overseas sales of products, said Sheikh Muhammad Naeem, North-Zone Chairman, Pakistan Tanners Association (PTA).

One of the key reasons for the consistent fall experienced by the industry, in the exports of leather goods, is the dearth of raw materials in the country. This is owing to smuggling of animals to Iran and Afghanistan.

Naeem has urged the government to keep a check on people who are not concerned with the industry but are yet exporting raw materials at the early stage. As per Naeem, this is burdening the already declining leather industry.

He continued further that, the raw hides and wetblue was legally being exported to their competitors like India and China in throw-away prices.

More so, some of the World Trade Organisation (WTO) countries like Bangladesh, China and India have already imposed a 60-70 percent duty on exports or have completely restricted the exports of raw materials.

The leather industry that directly provides livelihood to 250,000 families in the country, apart from being the second largest export industry of Pakistan, is currently undergoing huge crisis.

Other than other problems, the industry is also facing dearth of gas, electricity and fuel, further worsening their crisis. Naeem has requested the government to adopt immediate measures to resolve the issues so as to revive the value-added sector and earn back important foreign exchange.

Fibre2Fashion News Desk - India

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