i INP-WEALTHPK

Pakistan needs to focus on boosting leather exportsBreaking

July 21, 2023

Mansoor Sadiq

Pakistan’s leather industry, the second largest export industry after textiles, has a massive potential to become one of the leading exporters in the world through viable marketing and innovation. Member Executive Committee Sialkot Chamber of Commerce and Industries (SCCI) Shoaib Imtiaz said while talking to WealthPK that Sialkot is the hub of Pakistan’s leather products with more than 280 tanneries operating in the city. He said Sialkot was the hub of small, medium and large-scale industries, and the business community in the city had a broad vision to earn valuable foreign exchange for Pakistan. “Sialkot is acknowledged internationally as a quality producer of sports goods, surgical instruments, leather goods, sportswear and musical instruments.

Production of leather products is also a source of fame for Sialkot for decades,” Imtiaz said. Sialkot’s leather industry dates back 100 years as leather was initially used to manufacture footballs; however, in the 1970s, the production of leather gloves started, followed by leather garments. In the 1980s, artificial leather replaced natural leather in the production of footballs. Resultantly, the tanners producing leather for football manufacturers switched to production for gloves, garments and other leather accessories. This led to emergence of leather products manufacturing industry in Sialkot. The provincial government of Punjab with the cooperation of tanners has also established a Tannery Zone in Sialkot and the process of shifting the tanneries is continuing.

Imtiaz said the construction of a plant for treatment of leather industry wastewater is also in the last phase of completion. After 2023, no tannery in Sialkot would be allowed to operate outside the tannery zone keeping in view the environmental considerations. President Tannery Association of Pakistan Raza Munir said there were 620 plots of tanneries in Sialkot Tannery Zone. He said more than 280 tanneries are operating in Sialkot city, which is a hub of manufacturing leather goods, including jackets, gloves, bags and sports goods associated with the leather industry, and all leading world leather trade engines, including Alibaba and Amazon, also purchase leather products from Sialkot.

Pakistan’s leather sector has massive potential to increase exports of value-added goods, but being a labour-intensive industry, it requires expertise and skills. Pakistan, a large producer of leather in the world, can maximise profits through value addition and innovation. Pakistan’s leather industry contributes around 5.4% to exports, as per the Pakistan Bureau of Statistics (PBS). Pakistan’s top potential export markets for leather products include the United States, China and Europe. The ratio of exports to these and the rest of the world markets can be enhanced through better marketing and participation in trade fairs and exhibitions.

Credit: INP-WealthPk