Leather industry stakeholders have opposed the setting up of a new leather institute in Lahore, and termed the Commerce Ministry's decision as irrational, urging the government to provide the funds to be spent on the institute to the already established leather institutes in Karachi and Gujranwala.
The Export Development Fund (EDF) Board has decided to set up an institute, for producing skilled manpower for the benefit of leather industry, and approved Rs 5 million for preparation of feasibility report, while the cost of the new institute has been estimated at Rs 150 million, which would be paid out of export development surcharge.
PTA Chairman Saiduddin while talking to Business Recorder said that the Board did not take the stakeholders like the Pakistan Leather Garment Manufacturers and Exporters Association (Plgmea) and the Pakistan Tanners Association (PTA) into confidence before taking the decision.
He said that concern in this regard has also been expressed in writing to the Ministry of Commerce with a request to drop the idea of setting up of leather institute in Lahore. It was also suggested that the same funds be allocated to rehabilitate the National Institute of Leather Technology Karachi and Leather Technical Institute, Gujranwala. He said the infrastructure and machinery is available at both these institutes. The National Institute of Leather Technology (NILT) Karachi is currently facing severe financial problems and, due to lack of funds, salaries have not been paid to the employees for the last few months.
He pointed out to the Ministry of Commerce that the NILT could not enroll new students this year because of lack of funds. As a result, the institute presents a deserted look and needs the government's serious attention, he added. The entire manpower, presently engaged in the leather industry was produced by both these institutes, which now because of lacking appropriate funding are non-functional, he said.
The leather industry has still potential to further grow, as Pakistan is the best leather producing country in the world. He stressed the need for uplift of both these institutes by upgrading the machinery and provision of latest equipment besides developing curriculum on modern lines so that exports of leather and leather goods could be enhanced.
He said that the government should spend the allocation for the newly planned institute for Lahore on training of the faculty and upgradation of the existing institutes. The NILT was established in Karachi at a cost of Rs 500 million with the view to produce skilled manpower for the leather industry that is fetching substantial amount of foreign exchange to the national exchequer.
The government had provided land for the Institute that was built at a cost of Rs 60 million which is presently facing severe financial crunch and not a single government department/ministry is providing funds for its revival.
He said out that the government was already funding and running a number of institutes including Cutlery Institute of Pakistan, Institute of Jewellery Development, S.M.A Rizvi Textile Institute, Fan Development Institute, Gujrat, Karachi, Textile Institute of Karachi, Pakistan Institute of Fashion Design, Lahore (Karachi, and Islamabad Campus). He suggested to the government to direct the Trade and Development Authority of Pakistan to take over both leather institutes and provide funds for their rehabilitation.
The government should be responsible for providing skilled manpower, which would not only help the local industry but also would play a key role in alleviating poverty in the country.
All countries, which made tremendous progress in industrialisation, have substantially spent on imparting technical education. He urged the Ministry of Commerce to consult with the stakeholders prior to take any decision for using export development surcharge. He also said that the EDF spending should always be in the best economic interest so that objective of enhancing the country's exports could be achieved.