India will snatch Pakistan’s leather market share: Usman

Leather sector exports are on the declining trend and if the situation persisted the Indian competitors will snatch further market share of Pakistan’s leather and leather goods, warned Pakistan Tanners Association’s Standing Committee on Gas and Infrastructure Chairman Usman Umer.

While criticising the government’s industry policies, he said the present government, instead of offering incentives to the ailing industry, unnecessarily over burdening it by levying unethical and unpractical cess like gas Infrastructure development cess (GIDC) due to which the future of exports-oriented industry was facing uncertainty.

Drawing government’s attention towards stagnation of exports in leather sector, Usman said that leather export had declined by more than 14 per cent during the last five years from $1.22 billion in fiscal year 2007-08 to $1 billion in 2012-13, mainly due to energy crisis and frequent load-shedding of electricity and gas shortage.

He explained in detail that leather processing was continuous process industry and electricity shut downs not only cause serious damage to leather in process but also had adverse effects on its quality. Due to this serious problem the leather sector was facing stagnation in its growth for the last five years, he added. “The major reason for decline in growth of this second largest export sector was mainly due to energy crisis and now government’s decision to levy Rs150 mmbtu cess on gas.