Muneeb ur Rehman

Pakistan’s leather industry has the potential to achieve significant milestones through collaborative ventures by the Pakistani and Chinese entrepreneurs within the framework of the China-Pakistan Economic Corridor (CPEC), said Tariq Ismail, Secretary of Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA), while talking to WealthPK. In FY2022-2023, Pakistan's leather exports declined 7% year-on-year to $887 million from $953 million in the previous year. This downturn was further reflected in 18% decrease in other leather manufacturers and 11% reduction in leather garments, respectively.

Source: Pakistan Bureau of Statistics (PBS)Top of Form

Tariq said collaborative ventures involving entrepreneurs from both China and Pakistan within the CPEC framework held the potential to stimulate the expansion of leather-related SMEs. Additionally, there exists an opportunity for modernization and upgradation of the leather industry through technology transfer and financial support. Pakistan has a natural advantage in the leather industry relative to numerous other developing nations in Asia, he said. “The primary raw material for the leather industry is derived from livestock, and Pakistan benefits from a conducive climate and geography that consistently facilitates the breeding of commercial livestock such as cattle, cows, and buffaloes”. Unfortunately, conversion to in-demand finished goods is not occurring at a satisfactory pace, he lamented. “The pace of growth has been impeded by the challenge of adapting to the evolving customer demands, particularly the need for swift turnaround times in the fashion sector.

While Pakistan possesses superior-quality raw materials such as cow, buffalo, goat, and sheep hides, several other factors have curtailed the overall production capacity”. He said that CPEC, in this regard, served as a silver lining. “Through collaboration under CPEC, Pakistan's leather industry stands to gain increased access to global markets. Given China's significant role in the international market, it presents opportunities for Pakistani leather products to tap into a broader international audience”. Tariq Ismail pointed out that in the field of leather and apparel, China presently held a predominant position in the transformation of raw leather into finished goods. Nevertheless, given the escalating labour costs in China coupled with the comparatively lower labour costs in Pakistan, both nations are poised to foster a mutually beneficial, win-win scenario in the leather industry.

Credit: INP-WealthPk