In a recent high-profile meeting held at the Pakistan Tanners Association (PTA) headquarters, Chairman Hamid Zahur, Vice Chairman Danish Aman, and other PTA members engaged in an extensive dialogue with Ahsan Iqbal, Federal Minister for Planning, Development, Special Initiatives. The focus of the discussions was to address pressing challenges faced by Pakistan’s leather industry and to outline strategies for its growth.
Chairman Hamid Zahur advocated for restoring the leather sector to the zero-rated tax regime and maintaining it under the fixed tax regime rather than the final tax regime. This move, according to the PTA, is essential to boost the sector’s competitiveness in the global market.
Another critical point emphasized was the timely disbursement of pending refunds, including income tax, sales tax, and duty drawback, which have been delayed for over four months. Zahur stressed that these delays hinder the sector’s cash flow and operational efficiency.
The PTA called for greater consultation with the business community before implementing policies. Notable concerns include the Lien of 3%, 6%, and 9% on delayed export payments, which result from increased shipping times and vessel shortages.
Chairman Zahur expressed disappointment that PTA’s recommendations had been overlooked during previous budget discussions and proposed regular consultations to ensure policies are beneficial for all stakeholders.
The PTA urged Pakistan’s Trade Investment Officers stationed in embassies worldwide to take proactive steps in improving the country’s image and expanding trade opportunities.
They specifically recommended negotiating economic partnership agreements (EPAs), preferential trade agreements (PTAs), and free trade agreements (FTAs) with key markets such as South Korea, Japan, Vietnam, and Bangladesh.
A major highlight of the meeting was a recommendation to establish modern slaughterhouses and abattoirs ahead of Eid-ul-Azha. Zahur pointed out that approximately 6 million animals are slaughtered during the festival, and proper storage facilities for hides and skins are vital to maintaining their quality.
Concerns about Karachi’s infrastructure were also raised, particularly regarding water availability, which is crucial for leather processing. The Minister assured his personal involvement in addressing these issues.
Exports from Pakistan’s leather sector currently comprise 85% value-added products and 15% raw materials. PTA aims to increase the sector’s export value to US$2 billion by 2029, aligning with the Planning Ministry’s ‘Uraan Pakistan’ program.
Finally, PTA invited Ahsan Iqbal to the Pakistan Mega Leather Show, scheduled for January 26-28, 2025, in Lahore. The event is expected to attract international buyers and showcase Pakistan’s leather industry potential.
