Pakistan’s leather industry is said to be “disappointed” following the presentation of the country’s federal budget for the fiscal year (July 2007 to June 2008) last weekend, which “ignored” the sector and failed to offer any relief to struggling producers.

Although the sector had largely expected import duties on tanning machinery, spare parts and chemicals to be reduced to zero, the budget actually placed a
1% special surcharge on imports which, according to those in the industry, will further increase the cost of production. Leather garment exporters had also requested a ban on the export of raw hides, skins and wet blue to ensure raw material supplies to the domestic industry.

Commenting on the budget, chairman of the Pakistan Tanners Association S.M. Naseem expressed dissatisfaction that no assistance for the industry had been provided, adding that he hoped that the government would take stock of the “dismal situation” and provide encouragement for tanners in the forthcoming trade policy.