Pakistan's leather sector has potential to push up the exports of leather and leather products five times ie to $5 billion, provided an incentive package in line with the textile sector is announced for the leather industry.
Talking to Business Recorder here on Monday, the Pakistan Tanners Association Chairman Agha Saiddain said that the leather sector also needs five-year national leather policy in line with the textile policy that could play an important role in giving boost to the country's exports.
He termed the national textile policy 2009-14 as innovative and full of vision, and appreciated the Federal Minister for Textile, Farooq Saeed Khan, for introducing revolutionary policy for uplift of the textile sector. "Now it is up to the textile sector how it reaps the benefits of the policy and achieves the export target of $20 billion set by the ministry," he said.
Leather exports recorded a decline of 29.44 percent during 2008-09, while India, China and Bangladesh saved their leather industry from global recession by allowing special incentives to the leather sector in the name of Special Relief Package. India has allocated Rs 13120 million for rehabilitation of its leather industry under the 10th and 11th leather plan, he added.
Said that the leather strategy report, compiled by J E Austin in consultation with the sector's stakeholders, has already been submitted to the Federal Ministry of Industries and Production for further action. He urged the Minister of Commerce to take up the matter with the Ministry of Industries and announce incentive package under five-year national leather policy in line with the textile sector.
He further said that refinance at lower rate of 5 percent, exemption of load shedding, duty-free import of tanning and footwear machinery, financial grant for small units, 50 percent financial assistance to bear the interest cost on imported machinery, and financial assistance for setting up treatment plants in individual tanneries should be included in the proposed policy without further delay.
The leather sector has a potential to push its exports to $5 billion from the present $943.788 million, he said, and added that the leather sector is more deserving for incentives which were allowed to the textile sector in the recent policy. The leather industry, being labour-intensive, provides jobs to hundreds of thousands of families, he said. Also in line with the textile sector, the government should bear the burden of the social security and the EOBI dues with regard to the ladies working in the leather garment factories and footwear units, he added.
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