One of the major issues that leather industry is facing is the export and smuggling of live animals to Iran and Afghanistan. PTA Chairman, Khurshid Alam said the leather sector is on the verge of collapse and requires immediate measures by the government. He said in the last three years the export of leather and leather products has seen a decline of 30% from $1.220 billion to $863 million last year – whereas the value per unit of leather has registered a decline of 17.7%. He addressed the problems of live animal smuggling out of the country.
‘On a daily basis, about 100 trucks of cattle are crossing the borders into Iran and Afghanistan. Scarcity of livestock means less slaughter and hence less hides and skins available for processing by the tanning industry of Pakistan’, he said.
Alam stated that ’Government staff are also involved in the smuggling and they have fixed the rate of Rs 2000 ($23.3) per cow and Rs 500 ($5.8) per goat and sheep. The PTA demand an immediate ban on issuance of licenses and quotas for the export of live animals from Pakistan’.
He emphasised that unlike cotton, leather is based on a by-product (hides and skins) of livestock industry.
‘Our competitors such as India and Bangladesh have imposed a ban on exports of raw hides and skins,’ he said. Alam also suggested the government provide incentives for cattle farming and requested the government stop the export and smuggling of live animals.
