Pakistan looks back on bumper year
An annual report from Pakistan's State Bank has suggested the country’s leather exports were given a boost in the financial year from July-June 2000-01 due to various unforeseen factors such as fashion trends and the foot and mouth epidemic. Exports of leather (and leather goods) contributed $658.4 million to total export earnings for the year, up over 28% compared with the previous 12 months, and exceeding government targets. Exports of tanned leather increased by an impressive 33%, although volumes rose at a higher rate than unit price.
Apart from the footwear sector, Pakistan's leather and leather goods industries had been declining over the previous few years mainly due to quality concerns and competition in the international market. The major factor for the recent increase identified by the report was the spread of foot and mouth disease in Europe, especially in UK, which led to the mass incineration of livestock (including their hides). The report also noted increased demand for leather garments and designer products in the US and Europe over the last couple of years.
