Irfan Ahmed

The exports of Pakistan leather manufactures decreased by 2.41% in the first two months of the fiscal year 2022-23 as compared to the corresponding period of the fiscal year 2021-22, according to Pakistan Bureau of Statistics (PBS). Leather manufactures exports were recorded at $103.756 million in July-August FY23 against the exports of $106.319 million in July-August FY22. On year-over-year (YoY) basis, leather manufactures exports increased by 20.88%, and remained at $53.437 million in August 2022 compared to $44.206 million in August 2021. The country's monthly leather products exports increased by 6.20% to $53.437 million in August 2022, compared to $50.319 million in July 2022.

Source: PBS website/WealthPK research

The PBS data shows that the exports of leather garments decreased by 6.85% to $53.082 million during the period under review compared to $56.984 million in the first two months of FY22. On YoY basis, the leather garments exports increased by 17.18% to $26.692 million in August 2022 against the exports of $22.778 million in August 2021. Pakistan’s leather garments exports increased by 1.14% on month-over-month (MoM) basis to $26.692 million in August 2022, as compared to $26.390 million in July 2022.

Data shows that the exports of leather gloves increased by 3.90% from $46.308 million to $48.112 million in the first two months of the current fiscal year. Exports of other leather products decreased by 15.36% from $3.027 million in July-August FY23 to $2.526 million in the same period of FY22. On MoM basis, the exports of leather gloves from the country witnessed an increase of 14.24% to $25.655 million in August 2022 compared to $22.457 million in July 2022. Exports of leather gloves increased by 38.03% to $25.655 million in August 2022 compared to exports of $20.039 million in August 2021. The country’s total footwear exports increased by 20.91% to $32.393 million in July-August FY23 compared to $26.791 million in the last fiscal year.

Pakistan’s overall textile exports increased by 4.18% during the period under review compared to the same period of last year, reports WealthPK. Textile exports were recorded at $3.056 billion in July-August 2022 against the exports of $2.933 billion in July-August 2021, showing a growth of 4.18%. Pakistan's leather industry currently contributes significantly to the nation's exports and is one of the major earners of foreign exchange. Thousands of jobs are supported by this sector, which contributes 4% to national income from exports.

Economic experts pointed out that there was a noticeable growth in Asian economies such as China and India despite changing circumstances around the world. They believe that Pakistan can also grow at a faster rate, but political issues, socio-economic environment, and lack of updated technologies are main obstacles.The devaluation of Pakistani currency has been positively affecting the sales of export sector companies. China is the largest producer of footwear and leather goods, and Pakistan produced excellent leather for big brands with lower labor costs. Experts said there was immense potential for cooperation between the two countries to create a win-win situation.

Credit: Independent News Pakistan-WealthPk