Licensed export and smuggling of live animals to Iran and Afghanistan has declined supply of skins and hides to the local export-oriented leather industry by 25 percent, former chairman Pakistan Tanners Association S M Munir told Business Recorder here on Tuesday.
He said more than 100 trucks of cattle are crossing the borders into Iran and Afghanistan creating scarcity of hides and skins for processing by the tanning industry of Pakistan besides abnormal increase in the prices of mutton and beef in the country. He said PTA has made several appeals to the government in the recent past to stop the export and smuggling of animals and export of meat in the greater interest of the local leather industry but without any positive results.
"Even yesterday at the PFCCI meeting with Federal Secretary Commerce Zafar Mahmud, we apprised him about the crisis like situation in the leather and leather valued added industry. He promised to take up the matter at the highest level for remedial measures," Munir said.
He said the tanners have sold out their stocks to fulfil past export orders; now they are not getting sufficient raw material to accept fresh export orders." If the government does not take immediate measures to restore normal supply of skins and hides to the leather industry, then it would collapse irretrievably. Munir pointed out that Pakistan's export of leather and leather products has declined by 30 percent from 1.220 billion dollars to 800 billion dollars during the past two years due to short supply of skins and hides for producing "fully finished leather."
He further added that Pakistan's competitors in international market such as India and Bangladesh have imposed a ban on exports of raw hides and skins multiplying woes of our leather industry. "In these circumstances it is necessary for the government to facilitate the local foreign exchange earning industry and ban export and smuggling of live animals.