Pakistan tanners call for government help
The Pakistan Tanners Association (PTA) has again called on the government to raise the rates that apply to the drawback (reimbursement) of finished leather export duties, citing the difficulties currently being faced by its membership. The rate had previously been reduced from PRs5.50 to PRs3.09 for cow buffalo hides and from 3.65% to 1.72% for goat and sheep skins.
In a statement, chairman S. M. Naseem demanded a minimum rise of 3% of per item, bringing the rates into line with the leather garment exporters. In making the demand, he highlighted the adverse market conditions that had seen the volume of leather exports decline by a further 25% during September and October 2002.
These conditions included the slump in consumer demand in the USA and EU that had in turn reduced leather garment exports from the key markets of China, India and Türkiye, a mild winter and the substitution of leather by textiles for some fashion items. The price of finished leather had fallen by around 20% while large stockpiles were accumulating, the chairman observed.
There had been hopes that Pakistani tanners exhibiting at this month’s Lineapelle would win new orders, but this had proved not to be the case, with new orders taken being 50% down on the year before.
