Despite the fact that between June 2002 and July 2003, Pakistan’s exports totalled a record $11 billion, the country’s leather exports are expected to have remained stagnant at $640 million.

During a meeting between the Pakistan Tanners Association (PTA) and the Export Promotion Bureau (EPB), PTA chairman, Mr S M Naseem, said the leather industry has faced difficulties due to SARS and the economic slowdown in the US and the EU.

Mr Naseem made a round of proposals aimed at improving the country’s leather exports. He called for a ban on the export of live animals and requested that imports of machinery for tanning are exempt from incurring an import duty. Naseem also called for the withdrawal of the Export Development Surcharge (EDS) on finished leather exports and requested the EPB chairman intervenes on sales tax as tanners feel as though they are not being treated fairly.

At a later meeting, the Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) met with the EPB. PLGMEA chairman, Mr Fawad Ijaz Khan, also made a round of suggestions aimed at boosting the country’s leather garment exports. He said the Pakistani government has banned the trading of wild animals’ skins and furs. Mr Fawad pointed out that manufacturers tend to use fox fur as the trim to clothing and suggested that the law should be changed to protect endangered species, rather than wild animals in general.

He also suggested that the EPB distributes documentary CDs about Pakistan’s leather garment industry to commercial buyers and importers. He said the CD should contain all the necessary information and statistics relating to the industry and provide contact information.  Mr Fawad discussed plans to hire Korean technicians to train Pakistan’s workforce.  The experts will arrive in Pakistan at the end of July 2003 and remain in the country for five months. The chairman also pointed out that many European buyers are demanding product quality tests on leather which are expensive. He requested that the EPB provides a subsidy to exporters to help them cover the cost.

During the meetings, the PTA, EPB and PLGMEA all suggested that the Pakistan Leather Show 2003 should not be held and the funds allocated to other promotional activities.

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