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Leather exports suffer 30% decline
11
Oct '10
Leather industry in Pakistan, which once used to be the second largest contributor to country's exports with 5.4 percent share, is now facing extinction with a sharp fall of 30 percent in its exports to $863 million from $1.22 billion, three years ago.

Khurshid Alam, Chairman of the Pakistan Tanners Association while speaking to the media stated that, it is for the first time in last 64 years that they are holding a press conference, as the sector's issues are getting intolerable and the authorities too did nothing except giving fake consolations.

The industry is finding it difficult to cover its cost for various reasons like, a 63 percent rise in power tariff, 70 percent increase in gas rates and labour cost going up by 48 percent, Alam said. He also mourned that as against Rs. 4.25 per unit in 2007 the power tariff has now been hiked to Rs. 11 per unit, and that too is coupled with acute load shedding.

Though he lauded the government's move of exempting textile sector from load shedding, but at the same time also pleaded the government to exempt 800 tanneries in the country from gas and power load shedding, which too are greatly suffering on account of such load shedding.

The official requested the government for continuous supply of gas and power, citing that leather producing is a constant process which gets interrupted due to load shedding causing damage to hides and which also gives rise to many quality issues.

Fibre2fashion News Desk - India

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