PTA cautious over trade policy

27/07/2005

The Pakistan Tanners’ Association (PTA) has expressed reservations over the success of the trade policy (2005-06). The PTA feels that it does not offer the right incentives to the tanning industry in order to contribute significantly towards helping the sector to achieve the national export target.

The chairman of the PTA said that the export target for the leather industry, set at $1 billion for 2005-2006 would not be possible unless solutions to the problems that exist in the industry could be found. He once again urged the government to offer a 25% freight subsidy to leather exporters for air shipments, which has already been introduced for other sectors.

He also proposed duty free imports of all types of tanning machines and spare parts, even if locally manufactured parts are available, to ensure quality production, adding that there should also be subsidies and interest free/soft loans to set up wastewater treatment plants in tanneries.