Pakistan Tanners Association's (PTA) chairman Muhammad Musaddiq has said that slow cash flow and liquidity problems of PTA members in the wake of their pending claims pertaining to customs duty drawback, sales tax and income refund, will severely affect their business of buying raw hides and skins during Eid-ul-Azha.
Voicing his concern over falling prices of raw hides and skins in the world as well as in the local hide market, the PTA chief said that he was expecting considerable decline in value of hides and skins of sacrificial animals during all the three days of Eid-ul-Azha.
He said that tanners during the peak season of sacrificial animals' slaughtering usually purchase hides and skins in bulk quantity worth around Rs 10-12 billion, each year, but due to economic recession in international leather market ie in China, Turkey and other European countries and depreciation in their currencies, the demand and export of leather from Pakistan has also been reduced.
He said that the leather industry's worsening situation has already been brought into the notice of the government with a request to release their pending outstanding claims of billion of rupees by Eid-ul-Aza. Apprehending that there will be big decline in the prices of hides and skins during Eid-ul-Aza, the PTA chief said that around 7.3 million hides & skins are expected to be collected as per details furnished below:
Approx. Total value of Qurbani hides and skins is about Rs 6-7 billion. He feared that due to poor purchasing and improper curing, a large number of the hides and skins may get damaged during this Eid. The PTA chief also demanded the government to ensure uninterrupted supply of power and gas to the processing tanning Industry at Karachi, Lahore, Kasur, Sialkot and other cities of the country as it was must for smooth processing of hides and skins of sacrificial animals to be collected on Eid-ul-Azha.

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Sacrificial Animals         Approximate Quantity   Approximate Price per Hide/Skin
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Cattle (Cow and Buffalo)      2,500,000 Hides            Rs 1,500 - 1,800 per Hide
Goat                          4,000,000 Skins                Rs 175 - 225 per Skin
Sheep                           800,000 Skins                Rs 125 - 175 per Skin
Camel                            30,000 Hides               Rs 800 - 1000 per Hide
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TOTAL:                        7,330,000 = (7.3 Million) Hides & Skins
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