INP-WealthPk

Pakistan’s Leather Industry Has Huge Export Potential

April 04, 2022

By Ayesha Mudassar ISLAMABAD, April 04 (INP-WealthPK): Pakistan's leather sector is the country's second-largest export industry after textiles, which has enormous potential for growth.

Commodity July-June, 2020-21 July-June, 2019-2020 % Change
  Leather Garments Quantity US$ value Quantity US$ Value US$ Value
1,340 2856,094 1,003 250,920 14.02
According to the Pakistan Bureau of Statistics (PBS), the country's leather garment exports climbed by 9.32 percent to $218.419 million from July-February in the current fiscal year 2021-22, compared to $199.793 million in the corresponding period of the previous fiscal year, which is a source of satisfaction for leather exporters, reported WealthPK. Comparison of last two fiscal years: PBS The Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA) shared with WealthPK that the 7th Pakistan Mega Leather Show was held at Lahore's International Expo Centre to boost Pakistan's favourable image in the global business sector. The mega show was also aimed at inspiring leather business entrepreneurs to expand their operations, boosting investor confidence in Pakistan's business market, and strengthening Pakistan's domestic potential to create a viable platform for joint ventures between Pakistan's allied industries and foreign firms. According to PLGMEA, the show attracted a considerable number of foreign participants from China, Italy, Spain, Germany, Portugal, and other countries. The PLGMEA has been actively involved in strengthening leather garment exports by participating in local and international trade shows. There are almost 800 tanneries in the country, working to produce the highest quality finished leather from cow, sheep, buffalo, and goat skins. Within the leather garment sector, China, Italy, and Vietnam are the top three exporters, which exported leather garments worth $59.97 billion, $19.86 billion, and $19.85 billion, respectively, in 2020. Globally, in recent years, the tanning industry has made great investments in innovation and technology to not only generate better products but also lessen the environmental impact of the tanning process. According to Pakistan Tanners Association, tanneries have started moving from the city areas to the tannery zones, which will reduce environmental pollution to a large extent and raise the global demand for Pakistani leather products. Pakistan's leather garment exports are primarily concentrated in the European region, with a market share of roughly 80.5%. The second-largest destination is America, followed by Asia. The potential of other markets can be tapped through better marketing and participation in trade fairs and exhibitions. The government of Pakistan supports the leather garment business by exempting imports from custom duties, enhancing duty drawback rates on leather garments, and lowering regulatory duties. Pakistan is rich in livestock and therefore has the potential of developing a high-performing leather industry. The industry requires a well-integrated vision along with the implementing capacity to establish a long value chain integrating modern slaughterhouses, efficient tanneries equipped with cutting-edge devices, and finished leather garments manufacturing units.