This is the third budget of present government and the third time in a row the government has altogether ignored the second largest export industry. In his press statement after budget speech 2011-12, Tanners’ Association Pakistan Chairman Khurshid Alam stating his view that the budget speech was depriving the industry.
Along with few positive features, the fiscal policy once again failed to attach due priority to the prevailing requirements for sustainable development of leather sector. Alam was particular in pointing out absence of any concrete measures to end energy crisis for the exporting sectors. He stressed on the need for reviewing interest rates and introducing export friendly rates which is altogether missing in the proposed budgetary measures 2011-12.
He was also very critical of the raw material situation for leather industry of Pakistan. He said that the government is persistent in overlooking an alarming situation. He cautioned the authorities that smuggling and export of live animals through quota is severely hitting the supply situation of raw hides and skins. Meat prices and the prices of raw hides and skins are also indicative of this unchecked draining out of live animals.
Raising duty slab from 20 percent to 50 percent on the export of wetblue grain and split leather is another demand of leather industry which is not been taken care of. He asked the government to take notice of the situation as export of wetblue is depriving the industry of precious raw stocks and industry is becoming idle due to poor availability of wetblue and raw stocks.
