Chairman of the Pakistan Tanners Association (PTA), S.M. Naseem has once again expressed concern over the continued fall in finished leather exports and has urged the government to take concrete action to address the situation and implement a strategy to avoid any further decline.

He pinpointed several reasons for the current difficulties including high production costs in the face of tough competition, increasing meat prices which have led to a decrease in slaughter, a shortage of hides and skins, and a fall in raw hide and wet blue imports, and suggested numerous measures to stem the downward trend.

These included:  

• Seeking technical assistance and investing in R&D to upgrade the leather industry in order to meet the ever-changing demands of the market.

• Providing 100% subsidies/financial assistance to tanneries to install in-house effluent treatment plants to meet international standards and the demands of foreign buyers.

• Withdrawing the Export Development Surcharge of 0.25%.

• Reducing tax and income tax on exports from 1% to 0% for two to three years, or reducing it to 0.25% for a specified period.


• Reduce interest rates for loans and refinance to 5% & 3% respectively.

• Reducing utility costs by cutting gas, electricity and petrol prices.

• Providing financial assistance to National Institute of Leather Technology (NILT) in Korangi Industrial Area, Karachi.

• Offering a 50% freight subsidy to leather exporters on air shipments to
promote exports.


• Reducing customs duties for raw materials, and in particular for essential chemicals such as chrome.


• Implementing a zero-rate sales tax on the leather sector.

• Allowing duty free imports of tanning machinery and spare parts.