Leather Sector: Industry losing market share
He said the sector had lost competitiveness in comparison with Bangladesh, India and China
KARACHI:
The leather sector is fast losing its global market share to competitors due to sheer negligence by the government and its subsidiaries, said Pakistan Tanners Association (PTA) South Zone Chairman Hamid A Zahur. “Leather exports have declined in volume by 28 percent during the current year and the cost of doing business for the entire sector, including garments, gloves, footwear and finished leather has gone up by 12 percent.” He said the sector had lost competitiveness in comparison with Bangladesh, India and China. Zahur said the low rate of duty is hurting leather exports in Pakistan compared to regional countries as local taxes, besides customs duties are not refunded. “Export rebates in regional competitor countries are much higher than in Pakistan, plus, a weaker euro and devaluation of dollar has been the final nail in the coffin for us,” he added.
Published in The Express Tribune, August 6th, 2015.
The leather sector is fast losing its global market share to competitors due to sheer negligence by the government and its subsidiaries, said Pakistan Tanners Association (PTA) South Zone Chairman Hamid A Zahur. “Leather exports have declined in volume by 28 percent during the current year and the cost of doing business for the entire sector, including garments, gloves, footwear and finished leather has gone up by 12 percent.” He said the sector had lost competitiveness in comparison with Bangladesh, India and China. Zahur said the low rate of duty is hurting leather exports in Pakistan compared to regional countries as local taxes, besides customs duties are not refunded. “Export rebates in regional competitor countries are much higher than in Pakistan, plus, a weaker euro and devaluation of dollar has been the final nail in the coffin for us,” he added.
Published in The Express Tribune, August 6th, 2015.