Positive signs in exports

The leather industry in Pakistan has shown positive signs during 2003-2004 (end June, 2004) and total exports were of $723 million which exceeded the target of US$715 million fixed by the government for this year. Fawad Ijaz Khan, chairman, Pakistan Leather Garments Manufactures and Exporters Association said this is the highest during the past ten years and 4% more than last year ($695 million). Fawad Ijaz Khan said the best performer in the leather sector during 2003-2004 was leather gloves with exports of US$70 million up 23% from last year's US$57 million, whereas leather garments and other leather manufacturered goods increased by 1.22% to US$333 million from US$329 million. The exports of tanned leather during 2003-2004 was US$243 million which showed a 3.46% increase compared with US$234 million during the corresponding period last year. Exports of leather footwear were US$77 million, up by 4.6% from US$73 million. These are provisional figures and are expected to increase further. Exports can be classified as 67% in the form of leather manufactured goods and 33% in the form of finished leather. Fawad said that growth in the leather sector is only possible with more imports of leather because of the limited hides and skins available locally. The growth in production of livestock is around 2% annually. Therefore, the leather made-ups sector will have to rely heavily on imported leather in the future to sustain growth beyond 2% annually. The leather made-ups sector appreciates governmental support for imports of leather by waiving import duties. Presently, huge quantities of leather (approximately $30-40 million annually) are being imported, mostly by leather garment exporters. Imported hides and skins of sheep, cow and goat are mainly from Iran, the Middle East and African countries. Fawad hoped that for the year 2004-2005, leather garments exports would reach US$350 million. This target is achievable with the support of the government. The leather garment industry is geared up to meet new challenges and is carrying out an aggressive international marketing campaign to boost its exports.