ISLAMABAD: Pakistan has a great potential of boosting its leather garments exports if the industry is provided an incentive package, and proper marketing strategy is adopted.
Tasawar Hussain, Chairman of Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA), told WealthPK that an incentive package in the shape of exempting customs duties on imports, enhancing duty drawback rates on leather garments and decreasing regulatory duties would boost the country’s exports.
Tasawar said a gradual increase in leather garments’ exports has been observed over the last few years. He added that Pakistan’s exports of leather garments in July-April period of the current fiscal year stood at $262.1 million against $239.11 million in the same period of last year, with an addition of 9.62%.
“We managed to increase our exports by 14% in last fiscal year and exports volume rose to $286.094 million in 2020-21 from $250.92 million in 2019-20,” the PLGMEA chief said.
However, Tasawar was of the view that Pakistan’s actual export potential in leather garment sector is too big than the current numbers.
“Although the government is already supporting the leather industry, it should be treated as par with the textile sector in terms of incentives to boost exports,” he said.
Tasawar said that the lack of skilled manpower and training institutes is the biggest hurdle in producing quality leather garments in large quantity within certain period of time. He suggested that the government should develop training programs in leather garments design, sewing, and finishing with the assistance of the private sector.
“Training programs should also be arranged for the people involved in livestock and meat sector to enable them to preserve animal skins following modern techniques, and meeting the international standards,” he added.
The PLGMEA chairman stated that the import of almost all inputs and accessories such as zips, linings, buttons, buckles, and thread increases the cost of doing business. He suggested that supporting industry should be encouraged for manufacturing the stuff required for production of leather garments.
Tasawar also demanded that the government should help exporters in exploring new markets to enhance export of Pakistan’s leather garments.
“The government should motivate commerce attachés appointed in various countries to search new avenues for our products,” he added.
The PLGMEA charman said that trade and commerce attachés should also work in coordination with Pakistani exporters for better marketing.
Tasawar said provision of energy (electricity and gas) to the industry on concessionary price should continue in future otherwise higher rates would make Pakistani products incompatible with its competitors like India and Italy.
According to Pakistan Business Council (PBC), Pakistan’s leather garment exports are mainly concentrated in the European region, with a combined market share of around 80%. The second largest region is the Americas, followed by Asia.
Germany, US, France, Italy, UK, Netherlands, Spain, Switzerland, Russia and China are the top 10 destinations for Pakistani leather.
According to the PBC, Pakistan has the untapped potential of over $52 million for exporting leather garments to the US only. Other top potential markets include China and European countries which can be penetrated through better marketing and participation in trade fairs and exhibitions.
Leather garments amount to 27% of total leather-products’ exports of Pakistan.
