Home / Knowledge / News / Govt pulling away oxygen masks of the leather sector – PTA

Govt pulling away oxygen masks of the leather sector – PTA

Jun '09
Several tanneries in the Korangi tannery zone have downed their shutters on account of lack of business as the foreign buyers have stopped importing leather goods due to the worldwide economic slowdown, informed Mr. Afzal Husain, Chairman, Pakistan Tanners Association.

The Chairman said, in a meeting held recently, that in the nine months (July to March) of current fiscal, leather exports witnessed a drop of 20 percent, which could reach up to 25 percent by end of the fiscal year.

The leather sector is in need of an immediate rescue package from the government, otherwise exports from the second largest foreign exchange earner could witness a down fall, added the Chairman.

In order to salvage the tannery industry, the tanners have already started taking preventive measures and as a first step, Saturday has been announced as a holiday in addition to Sunday, from June, informed Mr. Husain.

He further said that pilling up of stocks in the tanneries due to decline in exports forced the leather producers to slow down production and save the cost of utilities at least for one day in a week.

He added by saying that, buyers say that, despite the bad and harsh weather, consumers are not purchasing leather jackets, as most of the leather products are expensive.

He said, after textiles, leather sector is the second largest export earner but as its exports have fallen down, it would hardly achieve the target of $2 billion this year.

Shut down of leather industries has left more than 7,000 workers unemployed as well as the prices of hides and skins had dropped by about 50 percent, informed Mr. Afzal, who had offered proposals for the budget to rescue the industry.

He had proposed the government to declare zero-duty for the raw materials used in leather processing, in the same way as it has been declared for the other export oriented industries, to provide them a level-playing field.

The chemicals that are being used only in the leather processing are being loaded with high custom duties, though they are not being used in any other industry, he said.

Leather sector, that had always faced the shortage of skins and hides, is unable to buy raw hides in spite of the plunge in prices of all kinds of raw skins, he revealed.

Cow skin that previously was purchased at Rs 2,400 to Rs 3,000 can presently be purchased at Rs 1,200 to Rs 1,400. Similarly, skins of Goat, Sheep and Buffalo are available at half the price but demand has been extremely low.

Increase in transportation cost of goods has become unbearable and it has been feared that more manufacturing units would go out of business, said Mr. Afzal, who warned that if incentives were not provided, it would affect the leather industry as well as exports.

He sarcastically said that governments all over the world were providing a slew of incentives for their crippled sectors, but the government in Pakistan was pulling away even the oxygen masks meant for survival of the leather sector.

Fibre2fashion News Desk - India

Must ReadView All


E-commerce | On 19th Sep 2021

Switzerland commits $4.4 mn for UNCTAD’s e-com, digital economy work

Switzerland recently announced a contribution of $4.4 million to the...

Pic: Shutterstock/humphery

Textiles | On 18th Sep 2021

China wants to join CPTPP; Japan to consult members to respond to bid

Chinese commerce minister Wang Wentao recently submitted an...

Pic: Shutterstock

Textiles | On 18th Sep 2021

Eurozone GDP recovers quicker than expected after lockdowns: EU report

The eurozone economy recovered more rapidly than considered earlier...

Interviews View All

Florian Heubrandner, Lenzing AG

Florian Heubrandner
Lenzing AG

Cannot see the world breaking away from cotton & polyester

Gaurav Davda, Jindal Worldwide Ltd

Gaurav Davda
Jindal Worldwide Ltd

Indian MMF sector to become globally competitive

Textile Industry, Head Honchos

Textile Industry
Head Honchos

Increase foreign exchange and create jobs

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Kishina Daruka and Mishika Daruka,

Kishina Daruka and Mishika Daruka

Headquartered in Kolkata, India, sustainable clothing brand Ora was...

Aashumi Mahajan,

Aashumi Mahajan

The Luxe Maison is a premiere haute couture e-boutique established after...

Sven Ghyselinck, Devan Chemical

Sven Ghyselinck
Devan Chemical

Headquartered in Belgium and with offices in the United Kingdom, Portugal...

Jacques Prigneaux, EDANA

Jacques Prigneaux

EDANA has been the leading global association and voice of the nonwovens...

Sameer Sonkusale & Rachel Owyeung, Tufts University

Sameer Sonkusale & Rachel Owyeung
Tufts University

A team at the Tufts University in Massachusetts was recently in news for...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

<b>Ruma Devi i</b>s a jet-setting promoter of artisans who has empowered...

Reynu Taandon, Label Reynu Taandon + Nikhita

Reynu Taandon
Label Reynu Taandon + Nikhita

Renowned womenswear designer <b>Reynu Taandon </b>has been serving the...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

September 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search