Pakistan’s leather exports fall
According to the Pakistan Tanners’ Association, the country’s leather exports have fallen 30% in the last three years. The association’s chairman, Khurshid Alam, claims exports were $863 million in the 2009-10 financial year compared with $1.2 billion in 2007-08. At the same time, unit prices have fallen by 18%.
Mr Alam said that electricity costs have increased by 63%, while gas prices have risen by 70% and labour costs have grown 48%. Added to this, power sources are unreliable, with power cuts making it more difficult for leather manufacturers to continue production.
He added that leather exports used to account for 5.4% of the country’s total exports, but that this figure was rapidly falling. There are approximately 800 tanneries in Pakistan but many now face closure.
