Global leather fairs: 80 percent subsidy for PTA members' participation urged

Chairman Pakistan Tanners Association (PTA), Sheikh Afzal Hussain has urged Advisor to Prime Minister on Commerce & Textile Abdul Razak Dawood to look into the matter for the approval of 80% subsidy for participation of PTA's members in global leather fairs, which is the only way to promote trade and export of leather sector from Pakistan.

Sheikh Afzal Hussain informed media that after having two consecutive meetings held at TDAP, Karachi we were informed that TDAP is going to curtail the budget which is around 75% or more for PTA members participation in seven international leather fairs, which are regular annual events for the last 2 decades.

We are very disappointed and demotivated with the ground realities as revealed from TDAP that the allocation of fund for only seven international regular events is Rs 4.5 million, which is only 3.3% instead of 80% as already approved by the Advisor during the meeting held on 18.09.2019 at Islamabad.

PTA has already submitted the budget of next year participation during 2020 to TDAP for the allocation of amount to the tune of Rs 55 million at 40% subsidy only against only 7 regular annual events of PTA, which have been organizing for the last several years consecutively against the total 100% expenditure for Rs 137 million and the allocation proposed by TDAP to PTA for Rs 4.5 million only, which is around at 3.3%.

It was also shared with the media that a meeting of PTA delegation led by former chairman Agha Saiddain with other senior members of PTA held with Abdul Razzak Dawood on 18.09.2019 at MoC, Islamabad wherein it was catagoricaly approved by the Advisor Sahib for the 80% Government financial support for all upcoming events of PTA henceforth including some Addl, New Fairs, which are emerging markets for leather on PTA's instance and issued directives to issue letter to convey to TDAP for proceeding with 80% government financial support to PTA's member exporters for the next year participation of all total 10 international leather fairs ie 7 regular events and 3 new emerging markets for leather, which is the dire need of the hour to make more aggressive marketing for penetration in the international markets for yielding the sizeable foreign exchange for the country as per real aspiration of the government.

It was really astonished/surprised to receive the meager subsidy percentage on average which was around 20% out of total claimed subsidy at 40% against the total 100% expenditure incurred by PTA for organizing National Pavilion of Pakistan in various international fairs around the globe for marketing and promotion of exports instead of their committed amount which was at 40%.

In other fact revealed during the meeting held with TDAP that original provision for the budget for leather was allocated for the year 2018-19 was Rs 34 million but released to PTA only Rs 21 million against total 7 regular international leather fairs and rest of amount which was Rs 84 million which was around 80% of the participation cost was borne/absorbed by PTA's member participants for the sake of Austerity drive announced by the Prime Minister of Pakistan for one year only.