Problems faced by leather sector in Pakistan

 

Problems faced by leather sector in Pakistan

Leather industry including leather products is the second-largest export earning sector after textiles. Currently this sector is contributing around $800 million a year and has the potential to multiply volume of exports with the improvement of quality and diversification in different range of products, specially garments and footwear. It is a job oriented sector providing employment to a very large segment of the society besides earning foreign exchange for the country. The leather industry consists of six sub-sectors namely, tanning, leather, footwear, leather garments, leather gloves, and leather goods. The leather and leather made-ups industry plays a significant role in the economy of Pakistan and its share in GDP is 4%. Ten years ago it was the fifth most important sector, and now it is the second. At the time of independence there were only a few tanneries producing sole leather and that too at a very small scale. However, since the industry has been flourishing. Starting with the production of picked and vegetable tanned hides and skins, the tanneries today are producing not only wet blue and crust, but also fully finished leather. 

Leather and leather garment industry of Pakistan is confronted with various challenges to survive in international market such as:

1)      Absence of advance technology and shortage of skilled human power; there is a growing need to prepare labor force having capacity to produce leather garments on scientific lines and comply with the demands of national market to compete.

2)      High cost of production; cost of production is also very high in Pakistan as compared to competition like China and India. The high cost of various inputs, especially utilities and taxes make Pakistan’s products – finished and unfinished – uncompetitive in international market and with no subsidy provided by the government, it just adds to the hurdle.

3)      Environmental impacts of leather industries in Pakistan; leather tanning tends to be very polluting as compared to other manufacturing industries. At every level of output, the level of toxicity is high due to the heavy hides leather converting process.

4)      Chrome issue; Chromium III salts are used extensively in the tanning process. Approximately 90% of the leather manufactured is tanned using chromium III, but misconception and ignoramus decision makers end up using chromium VI which is quite contrary to chromium III.