Despite the fact that Pakistan has increased its exports to Russia by 500%, the Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) chairman Fawad Ijaz Khan is still not satisfied with Pakistan’s market share in the huge Eurasian market. He stated that Russia is a very important market for leather garments and that Pakistan needs to exploit the opportunities it offers more aggressively.
Although the Russian leather market amounts to $1 billion, Pakistan exports only $1.6 million to Russia directly and $1-2 million through Dubai. This low market share is blamed on high import tariffs and the fact that China and Turkey have already captured the large majority of the market share. Another reason for the lack of Pakistan imports is, according to Mr Khan, a lack of trust between the two countries. Khan claimed that whilst fears and mistrust exist, then it is hard to trade efficiently. He went on to say that whilst the Consulate of the Russian Federation is active in encouraging improved business links between the two countries, Khan claimed that the Pakistan embassy in Moscow is doing little to boost trade.
The PLGMEA had planned to visit Moscow in June this year, but Mr Khan stated that the trip was postponed twice due to a lack of support from Pakistan’s Foreign Service representatives. He said that the PLGMEA was unable to secure appointments with Russian counterparts and was not assisted in obtaining visas.
