The government decision to allow the animals' export would heavily cost the leather sector exports besides creating severe meat shortage in the country. The Ministry of Commerce while taking this decision has allowed the export of live animals; 118,000 cattle/ buffaloes and 100,000 sheep/goats from Karachi, Gwadar Port, Quetta and Peshawar during the year 2012 that would cause scarcity of hides and skin in the country.
As a result, the entire leather sector would have to face shortage of raw material, said Agha Saiddain, former Central Chairman of Pakistan Tanners Association while talking to Business Recorder here on Monday.
He said the export of animals will deprive leather industry of 300 million sq.ft. cattle hides and 0.65 million sq.ft of sheep skins. If converted into value, the country will lose US $6.600 million from hides and US $975000 from sheep/goat leather. The total impact on our exports would be around US $7.575 million. This will bring pressure on beef/meat prices which are already sky high for the protein deficient nation. The scarcity of hides/skins will further push prices of raw material high and some more tanneries may shut down their production causing unemployment in the country, he added.
Since there is no proper check at boarders near Quetta and Peshawar, the exporters usually use the same permit again and again in connivance with the Customs staff. Due to this malpractice the actual number of animals exported is much higher than quantity for which export permits are issued, he maintained.
Agha Saiddain further said the most dangerous thing is that livestock of adult age ready for reproduction is exported which can create acute shortage of livestock in future months. Authorities have ignored this most important point while taking this short sighted decision of approval of quota for exports.
As per government statistics the country is having 34.3 million cattle, 30.3 million buffaloes, 59.9 million goats, and 27.8 million sheep which produce 13 million hides and 47.4 million skins annually. Besides milk and meat, these livestock produce 14 by products namely hides, skins, wool, hair, edible offal, casing, blood, horns, bones, fats, dung, urine, heads and trotters and glands, he added.
Agha Saiddain also said that hides, skins and casings were the most important among all these by products earning valuable foreign exchange for the country. The leather industry was providing jobs to half a million people and is under serious threat due to government policies, he said.
Since 2007-2008 the leather exports have been persistently declining that is an alarming situation for the country's economy, he added. Agha Saiddain said that there is a huge market for Halal meat and beef and Pakistan's market share is negligible. Instead of exporting live animal, the government must encourage the investors for setting up modern slaughter houses.
By establishing modern slaughter houses, the country would not only be able to earn huge amount of foreign exchange due to value added exports of meat but also make availability of substantial quantity of hides and skin for the leather industry which is presently being wasted following live animals export. The withdrawal of decision could help generate employment and give boost to exports of leather sector, casings and other allied products, he maintained.
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