Pakistan Leather Industry: A Historical Overview and Current Status

Overview
 In 1947, there were a few tanneries
operating on a small scale producing sole
leather.
 In 1950’s tanneries were set up at Karachi
and Lahore
 1960’s and 70’s marked the establishment of
tanneries at Hyderabad, Kasur, Multan, Sialkot,
Sahiwal and Gujranwala.

Leather Industry Today
 Today, the leather tanneries are divided into two sectors –
organized and unorganized sector
 700 units in total – 450 units in the unorganized sector
and 250 units are members of organized sector
 The tannery units in the unorganized sector producing
leather on cottage basis, with negligible use of machinery
 These are concentrated in the form of clusters
-Kasur has 275 tanneries
-Sialkot houses 250 tanneries
-Karachi has around 150 tanneries

 The Pakistan Leather Industry started with the
production of pickled and vegetable tanned hides and
skins.
 Today we produce not only wet blue and crust forms of
leather but we also produce fully finished leather and
leather based products
-Such as jackets, belts, gloves and footwear

 The industry plays a pivotal role in stimulating export
volumes
- In 2007-2008, the industry achieved exports of
worth US$ 1.22 billion, registering an increase 21%
when compared to the previous year
 Export of finished leather increased 26% in terms of
quantity and 16% in terms of value in the year 2007-08

 The major export partners are:
 European community(accounts
for 65% of the total exports)
 North and Latin American
countries as well as Central Asian
states(contributing 35% of total
exports)
 Pakistan has 1% share of the
world leather market.
 This is a reflection of the
deteriorating situation our leather
industry is in.
1%
3%
15%
3%
0%
2%
4%
6%
8%
10%
12%
14%
16%

Leather associations in
Pakistan
Pakistan garments
association(PLGMEA)-Karachi
Pakistan tanners association(PTA) -
Karachi
Pakistan footwear association(PFMA)-
Lahore
Pakistan gloves association(PGMEA)-
Sialkot

 Model used: Porter’s Diamond model
 Research methodology used:
o Published data
o Primary research conducted at
 Nova leathers Pvt. Ltd
 Omar Leathers Pvt. Ltd
 Noor Leathers
 Shafi tanners and co.
 Mehmood Brothers tanners and manufacturers
 Prime tanners Pvt Ltd.
 Blooming Leather Pvt. Ltd
 KHAS Pvt.Ltd
 Pakistan Tanners Association
 National Institute of Leather Technology

Factor conditions
Raw material
 The basic raw material used are the
hides and skins of ovine and bovine
animals.
 The word skin is used for small animals or
“ovine”(sheep and goat)
 The word hide is used for bigger animals
“bovine”(buffalos and cows)

Category-wise usage of the hides and skins:
 Cow hide and sheep skin is mostly used for smooth
finishes of the upper sole of shoes, inner side of gloves
and designer bags and clothing
 Buffalo hides and goat skin are used in coarser items
like leather soles and joints
Tanning methods used:
 Vegetable-tanning – uses ‘tannin’
 Chrome-tanning – uses salt compound of chromium

 Buffalo and cow skins mostly come from Punjab,
while goat and sheep is of much better quality in
Sindh.
 Interestingly enough we import around 70-80% of
hides and skins from Europe, Africa and Middle-east.
 Locally, tanners usually procures the raw material
from slaughter colonies(kamelas) situated in the
outskirts of various cities

 The leather tanneries purchase quite a lot of the hides
and skins during Eid-ul-Azha (some of them stock raw
materials for the 4-5 months of usage)
 The local slaughtering is mainly done by unprofessional
slaughterers during Eid-ul-Azha
 This results in a lot of unnecessary cuts that decreases
the net worth of the raw material or at times renders the
skin useless.

 Hides and skins are perishable items. They start
rotting soon due to the flesh and blood residue.
 Local slaughterers do not have state-of-the art
preservation houses and they use the traditional
method of “salting” to preserve the skin.

Million Numbers
Fiscal Year Cattle Buffalos Sheep Goats Camels
2001-2002 22.8 24.0 24.4 50.9 0.8
2002-2003 23.3 24.8 24.6 52.8 0.8
2003-2004 23.8 25.5 24.7 54.7 0.7
2004-2005 24.2 26.3 24.9 56.7 0.7
2005-2006 29.6 27.3 26.5 53.8 0.9
2006-2007 * 30.7 28.2 26.8 55.2 0.9
2007-2008 * 31.8 29.0 27.1 56.7 1.0
LIVESTOCK POPULATION IN PAKISTAN
(2001-02 TO 2007-08)

 Dyes and Chemicals
 90% of the dyes and chemicals used in
the tanning of leather are imported
mainly from
 Germany
 Spain
 Italy
 10% dyes and chemicals are taken from
MNCs which have got their set ups in
Pakistan
 Sandoz
 Bayer
 BASF
 Clariant

 The proportion of imported to local dyes is very high
because of the poor quality of dyes and the
restrictions
(regarding the usage of certain chemicals in the
manufacture of dyes) by international buyers.

 Labour
 The leather industry provides employment to 200,000
people of Pakistan
 Almost 80% of the labour is skilled( they have the required
expertise to operate the machinery)
 Approximately 20% are the unskilled workers who are
basically helpers( they help in unloading, loading and
packaging)
 Apart from this there are around 15 to 20% graduated ,
engineers and diploma holders In the big players of the
industry.
 The smaller tanneries have 2 to 5% of graduates in their
workforce

 Almost all the tanneries have the minimum age requirement of 18
years, below which they do not employ the candidate
 Basic training methodology prevalent is the “Ustaad-shaagird “
method
 The tanneries we visited have not conducted any sort of workshops
or skill development programs for their workers over the past two
years
 They believe that the expertise that the workers have is sufficient
enough to meet the buyer preferences
 Our leather industry is facing the same problems as the other
industries in Pakistan, which is the lack of interest of today’s literate
class to opt for working in these industries

 Training institutes:
 There are various training institutes that have been
established to provide leather based academic degrees.
Some of them are:
National institute of Leather Technology, Karachi(NILT)
Leather products development institute, Sialkot(LPDI)
Institute of Leather Technology, Gujranwala(ILT)
Pakistan Institute of Fashion Design, Lahore(PIFD)
Footwear training institute, Charsadda(FTI)
Facility cum Training centre, Kasur
Cleaner Production centre, Kasur

 There are various programs that NILT is offering in
order to impart Leather related knowledge. Some of
them are:
 Diploma of Associate Engineering(DAE)
 Diploma in Leather Technology
 Diploma in Leather garments
 Diploma in Leather goods
 NILT has fully fledged mini tannery, Physical, Chemical and
Analytical Laboratories, Information Technology Centre, a good
Library, Research & Design Laboratories with other essential
facilities which is catering to the needs of upgrading the leather
sector

Capital and Machinery
 Around 80 to 95% of machinery is imported from countries like Italy
and France
 The high percentage of import in terms of machinery is a reflection
of the insignificant manufacturing base in Pakistan.
 Around 5 to 10% machinery used by the small tanneries is locally
produced. Such machinery is locally known as chukrum.
 These are smaller in size and available at reasonable prices.

Research & Development:
 There are numerous institutes related to leather, yet the rate at
which research and development is being carried out is very
slow and is in it’s initial stages
 Our primary research showed that only big players of the
industry such as Nova leathers and Mhmood Brothers have
come up with a new dyeing technology(steel dyeing drums)
which ensure better quality of dyeing.
 The university of veterinary and animal sciences(UVAS),
Lahore and PTA have signed a research project for the
identification of skin diseases in animals and geographical
patterns of these diseases.

Infrastructure:
 There are severe infrastructure
problems faced by the Leather
industry.
 The industrial hub of Karachi, Korangi
Industrial Area (sector 7-A) does not
have a single metal road. These
tanneries are also deprived of the
basic utilities(such as water and
electricity).
 Being a water-based industry,
tanneries have to purchase water and
they have also arranged for company-
owned generators to ensure
uninterrupted power supply.
 The drainage system is in a very poor
condition as well.

Demand Conditions
Climatic conditions:
• The demand of Leather is highly dependant on natural
factors such as climate
• Pakistan lies in the temperate zone, the climate is
generally arid, characterized by hot summers and cool
winters. There are also wide variations between
extremes of temperature at various locations.
• The demand can still be created by focusing more on the
products which are not affected by the climate.

EXPORT OF LEATHER & LEATHER PRODUCTS FROM PAKISTAN
DURING JULY-JUNE 2006-07 VIS-À-VIS JULY-JUNE 2007-2008
Value = US Dollars in Thousand
Commodities Unit
July-June
2006-2007
July-June
2007-2008
% Change
Qty Value Qty Value
Leather ‘000’ SQM 19,225 356,884 24,257 415,263 +16.36%
AUP/Sq.M 18.56 17.12 -7.75%
Leather Apparel &
Clothing
‘000’ DOZ 848 388,115 1,121 528,154 +36.08%
AUP/Pcs 38.14 39.26 +2.94%
Leather Gloves ‘000’ DOZ 3,934 132,589 4,258 161,169 +21.56%
AUP/Pair 5.62 6.31 +12.31%
Leather Footwear ‘000’ Pairs 9,979 97,089 9,809 105,358 +8.52%
AUP/Pair 9.73 10.74 +10.40%
Other Leather
Manufactures
‘000’ KGS 1,360 33,477 521 10,177 -69.60%
AUP/Kg 24.62 19.53 -20.64%
TOTAL : 1008,15
4
1,220,121 21.02%

Garments
42%
Leather
33%
Gloves
16%
Footwear
8%
Other Leather
Products
1%
Product Profile
Footwear
56%
Upholstery
13%
Clothing
11%
Leather Goods
9%
Automotive
7%
Gloves
4%
Global Demand for Leather
Products

Absence of commercial farming:
• In Pakistan, 65% of the population resides in rural areas.
• The inhabitants of these areas do not take care of
animals in a professional manner
• Animals become victims of wobble fly disease and skin
rash.

Country Image and Price:
 70% of tanneries that we visited mentioned that the
major impediment in the growth of the Leather industry
is the unfavorable image Pakistan has in the
international arena.
 We identified 4 factors that are significant for the
development of any industry, that are:
 Country image
 Logistics
 Price
 Quality
 In Pakistan, we gave minor attention to these four
aspects which are otherwise essentials for success.

 The law and order situation is making
foreign investors reluctant to invest
 Even the hoteling facilities and country
ambience is not up to the standards

Animal activists:
 A recent culture shift has been observed, due to which
people are becoming more and more conscious about
the environment and extinction of animal life
 There have been recent activist movements such as the
one by Pamela Anderson and the Chetus organization

Livestock Industry:
 In Pakistan, we regard the meat industry to be of prime
importance, Leather is just seen as a by-product.
 This perspective needs to be changed for the
sophistication of local demand

Effluent treatment plant & REACH
agreement
 This plant has been made in
Korangi with the collaboration of
Dutch government.
 Certifications of social
compliance and standardization
for the use of chemicals.

Related & supporting
IndustriesFashion Industry:
 The fashion industry of Pakistan is not up to the
standards.
 There is lack of awareness among the masses
regarding the latest trends in fashion
 If the fashion industry flourishes and creates
awareness about its products, the leather industry will
get a boost as more and more people will be inclined
to buy leather based products(such as belts and bags)

 Film Industry:
 Pakistan’s film industry is almost non-existent.
 Over the years, India’s clothing industry has
prospered due to the fact that its film industry has
been progressing at an amazing rate, and that
makes Indiaa one of our major competitors.

Feed Industry:
 In the process of tanning, leather passes through the
shaving process in which a lot of wastage(burada type)
is gathered
 This wastage is then sent to the feed industry where it is
used in the manufacture of animal feed.

 Soap Industry:
 During the fleshing stage, the access fat is removed
from the animal skin.
 This fat is used in the manufacture of low-grade soaps

 Machinery:
 90% of the machinery used in the leather industry is
imported from countries like Italy and France.
 Our local manufacturing base is insignificant and no
conscious effort is being made to locally produce low
priced and good quality machines.

 Banking and finance industry:
 The credit availibilty to the leather tanneries is an on
going issue.
 The borrowing cost is high which deters further
investment in the industry.
 The initiative taken by the government to reduce the
Bank’s spread from 3% to 2% ( in 06-07) can help the
industry grow.

 Livestock Industry
 Livestock provides the most important raw material to the Leather
industry, therefore the quality and quantity of livestock available
matters a lot.
 Severe need to commercialize livestock farming in order to breed
healthy animals for provision of quality hides and skins.
 Hides and skins are worth more money and can have more value-
addition done to them therefore, this should be focused as a
primary product rather than a secondary product of the meat
industry.

Dyes and chemicals
 Our local chemical and dye manufacturing is not
supporting the Leather industry, as apart from a few
MNCs mentioned earlier, none of the companies meet
the international standards.
 Our local chemical and dyes should address various
health issues associated with the chemicals they
produce in order to abide by all the set international
regulations.

 Training, research and educational
institutes
 The institutes(already mentioned in the factor
conditions) are not working to their full capacity due
to the lack of students, faculty, proper academic
curriculum.
 The NILT has taken initiatives to train individuals in
Leather and Leather products but they are not
capable of attracting people, which is reflected in the
minute number of the present class at the
institute(currently 110)

Firm structure, strategy
and rivalryStructure:
 Divided into two subsectors –
organized and unorganized sector
 700 units in total – 450 units in the
unorganized sector and 250 units
are members of organized sector
 The unorganized sector has
retailers in the area of in Joria
Bazaar and Zainab market.
Leather
Industry
Organized
sector
Unorganized
sector

 The associations of leather in Pakistan
are:
Pakistan garments association(PLGMEA)
Pakistan tanners association(PTA)
Pakistan footwear association(PFMA)
Pakistan gloves association(PGMEA)

 The Pakistan tanners association fully represents the
tanneries all over Pakistan, and has represented the
issues of its member exporters at the federal level for
consideration
 Pakistan Tanners Association central sub
committees are also in touch with SMEDA to discuss
some relevant issues of the leather industry towards
to the formulation of the leather vision.

Clusters formation
 The organized sector is mainly
concentrated in the main hubs of
the Country – Karachi, Lahore and
Sialkot.
 Other towns having leather
industries are:
Hyderabad, Multan, Sahiwal, Kasur,
Sheikhupura, Gujranwala, and
Peshawar
 In Karachi Korangi industrial area
an informal cluster of tanners has
emerged.

 Informal Cluster: Korangi Industrial Area
(Sector 7A)
 This cluster comprises of not only over 150 tanneries
but also an effluent treatment plant, National Institute of
Leather and southern zone office of Pakistan Tanners
Association. The tanneries residing over here are all
export oriented .
 Apart from these 150 tanneries we have a few scattered
units in Sher Shah and SITE

Informal Cluster: Kasur
 Apart from this we also have a cluster in Kasur, in
this cluster there are mostly unorganized and
unregistered tanneries.
 There are 275 tanneries in total
 Average daily input is 190 tons of wet salted weight
 The units tend to provide hides and skins up to the
wet blue form only.
 The structure of industries in Kasur is a traditional
family owned business. This informal cluster has
always remained a high processing center mostly
catering to the needs of local, low priced bracket
footwear manufacturers

Rivalry
 Research proved that there is minimal
domestic rivalry among the tanneries
in Pakistan each tannery is working in
isolation and the actions of the rivals
does not have any direct affect on it,
as mostly the big industry players are
export-oriented
 So in order to brew competition and
innovation we need to propel a
competitive environment in the local
arena.

Strategy
 Lately, the leather industry has
engaged in various fairs domestically
and internationally in order to
increase awareness of leather
products among the masses
 Pakistan Pavilions was organized by
Pakistan Tanners Association in
collaboration with the EPB.
 The government of Pakistan gives
50% government subsidy in various
international fairs and exhibitions held
at different destinations in the world

 Some of the fairs in which Pakistan tanners
participated are mentioned below:
 Lineapelle Fair held in October 2005, at Bologna, Italy.
 IDF Leather Fair, held in January 2006, at Istanbul,
Turkey.
 MMT Section of APLF, held in March 2006, at Hong Kong.
 All China leather exhibition, held in September 2006, at
Shanghai.
 Le Cuir, held in September 2006, at Paris

 The government of Pakistan assigned a task of
Comprehensive development Strategy for the sector.
 The entities that are involved in this venture are
 SMEDA
 Ministry of industries
 Production & special initiatives
 The aim of this strategic step, is to reposition the
leather industry on the domestic, regional and the
internationla front.

 The leather vision and strategy also includes the
goal of setting up leather parks in Sialkot.
 SMEDA has initiated the project of IIN( industry
information Network)
 The goal is to provide a common platform which will
stimulate coordination among the members.

Government
 The government of Pakistan is not providing the
Leather industry with channelized and adequate
support.
 Repeated efforts have been made by the Pakistan
Tanners Association to let the government know of
their problems however they haven't yet achieved
anything worth mentioning.
 EPB has helped the leather industry by providing
easy access in international fairs and is also offering
subsidies from 50%-75%

 The article published in business recorder on the 28th December
2008, mentions that government of India and China are taken
various measures such as Indian government has injected
Rs.9130 million to save its leather industry.

1
0 %0 %0 %
Finishing Foils
25% Income Tax, 16%
Sales Tax
Tax on Import of
Inputs and
accessories
0%0-13%3-25 %25 %
Custom Duty on
Import of Inputs and
Accessories
15 %
Finished 7-11%
Footwear/Bags 11 %
Apparel 5%
Finished 7.5 %
Footwear 11.5 %
Apparel 11.4 %
Finished 0.8-1.17%
Apparel 3.22%
Gloves 1.76%
Footwear < 2 %
Duty Drawback/ Tax
Rebate
PAKISTAN INDIA CHINA BANGLADESH
Global Market
Share 1 % 3 % 15 % 2-3 %
Export Duty on
Finished Leather
0 %
0 %
(A few items have up to 25
% duty)
0 %
(Export Duty on Raw 20%)
0 %
Custom Duty on
Import of Leather (wet
blue, crust & finished)
0 % 0%
Wet Blue : Bovine,
Equine 5%
Sheep, Goat, Swine
12%
10% ( Wet Blue &
Crust)
Custom Duty on
Import of Raw Hides
and skins
0 %
0 %
Certain Categories
25%
Bovine: 0-6%
Sheep: 0-12%
10 %
POLICY COMPARISON MATRIX

 The Pakistani government should also provide the much
needed financial support (as proposed by Pakistan
Tanners Association, the provision of 25% financial
costs for setting up design centers and individual units).
 Another outcry by the tanners was over the high cost
and unwarranted supply of utilities (electricity, water and
gas).
 Even the logistic support is in a very poor situation.
 There have been many unchannelized haphazard
activities by the government to promote the leather
industry of Pakistan

 The government needs to take great strides in order to
improve the image of Pakistani products.
 Furthermore, as we read in the dairy sector, the
smuggling and exporting of live animals is
disadvantageous for the Leather Industry. The
Government needs to look into this matter.

 Export rebates of upto 23% were given uptil 10 years
ago, which has now been reduced to a meager 0.8
to 1% for finished goods, 0.22% for apparels, 1.76%
for gloves and 2% for footwear.
 This reduces our ability to compete with countries
giving high export rebates.
 For example, Indian and Chinese Leather exporters
receive around 7 to 11% export rebates for finished
goods, where as the Bangladesh exporters get 15%
rebates.

Impact of WTO on Leather
Industry
 Some of leather products from Pakistan especially leather
jackets are much in demand but under the foreign
renowned brand names, e.g Zara’s, Marks and Spencer,
and NEXT.
 Under WTO, no import tariffs are applied to raw hides and
skins in Pakistan at present. However, there are varying
levels of tariffs on processed goods.
 A major debate is about whether or not unfinished leather
should be exported or not, as a restriction in this case
would give the leather garment industry a stronger edge
over the leather tanners.1

 A major dispute with WTO concerning Pakistan’s
leather industry is the export restrictions on hides
and skins which were initiated by the European
communities.
 Despite the fact that Pakistan removed the
restrictions on the export of hides and skins, WTO is
still seriously concerned about the matter and it is
still a dispute.1

 Lack of Infrastructure:
 The industry is a water based industry, yet there is
extreme water shortage that tanneries have to face.
 There is an unwarranted supply of electricity, which
disrupts the production process.
 Road networks are in a very bad shape, where all
that is available are the “Katcha” roads.
 The drainage system is also in a very poor
condition.The drains carrying the industrial waste
are not covered.

•Availability of quality Raw material
•raw material is not good enough to meet the needs of
the international buyers
• 80-85% tanneries import their raw material.
•NewZeland
•Sudan
•Spain
•Europe
•Animals in Sindh become victims of the wobble fly
disease and skin rashes.

 Demand conditions:
 The local production is not reflective of international
demand.
 Internationally there is a huge demand for footwear.
 Pakistan is not at all competent in this arena and
accounts for 0.1% share of global footwear market.

4
Global Market Analysis
World Imports
US$ 47
Billion
US$ 110
Million
Market Share: 0.1 %
Growth: 8 % per year
since last 4 years
Production: 150 Million
pairs (1 % of world)
Strategy Working Group – Leather Sector
US$ 1.5
Billion
Market Share: 3.2 %
Growth: 20%
Production: 2 Billion
pairs (14% of world)
US$ 9.2
Billion
Market Share: 20 %
Production: 10 Billion
Pairs (66% of world)
Source: UNSD 2007Source: UNSD, 2007
Ref: US$40B, 2005 ITC,
Geneva, Council of Leather
Exports, India
PR-inside.com
Source: DGCI&S, India
April 07– March 08
Directorate General of
Commercial Intelligence and
Statistics
World Production:
15 Billion pairs
Exports for 2007
Source: Sina.com,
PR-inside.com

 Increasing global market competition:
 Pakistan’s Leather industry accounts for 1% of the total world share of Leather.
While countries like Bangladesh which entered this industry after Pakistan, is grabbing around 2-3% of the global
market share.
 Lack of R&D and workforce training.
 We do have numerous institutes for leather based technology, yet they have not been performing up to the
standards.
 Moreover the general perception, shared by tannery owners is that their workforce is good enough. This
needs to be changed and employees must be encouraged to take the courses offered by institutes like NILT

Gaps in the qualities of local supplies
 This is reflected in the inefficiency of the local
machinery and dyes manufacturers.
 Our local machinery and dye manufacturers are not
competent enough, forcing tannery owners to
import all the machines ands the chemicals.
 Empirical research shows that 80% dyes used are
imported.

Poor coordination among the cluster-
players
 The clusters in Kasur, Sialkot and Karachi are
the most important. Yet there isn’t a concerted
effort taking place to turnaround things for the
sector.
 There isnt a shortage of institutes
 NILT
 Leather products development ( LPDI)
 Institute of leather technology(ILT)
 But there is a need of unanimity of effort.

Cumbersome regulatory procedures
 Export rebates of upto 23% were given uptil 10
years ago, which has now been reduced to a
meager 0.8 to 1% for finished goods, 0.22% for
apparels, 1.76% for gloves and 2% for footwear.
 This reduces our ability to compete with countries
giving high export rebates.
 Over and above this, the Pakistan Leather Industry
is subject to high L/C Margin approximating to 35%.

Lack of intercompany competition/rivalry
 Lack of awareness in the local arena
 Red tape and bureaucracy
 There are 32 departments in the government to
look after the industries
 Unfortunately all that they is to hinder the growth of
the industry rather than support it.
Brand Pakistan
 The biggest impediment in the way of the industry,
has been Pakistan’s image in the international
arena

 Coordination between the relevant training institutes across
Pakistan.
 Management of the training institute facilities is not
proactively focused to meet the needs of the industry.
 Workforce development should be high on the list of strategic
interventions to be made within the leather industry due to
the challenge that they face in maintaining a workforce that
has the skills and qualities required for the sector to remain
competitive.
 Product development in the Leather industry is majorly
required. The tanneries in Pakistan should improve upon their
product lines through R&D and innovation.


 These days, people have become more aware of the
hazards caused by these industries to human as well as
animal life, therefore proper testing process of the
chemicals produced locally should be done.
 Increase awareness about the courses offered by NILT
in conjunction with the Northampton University.
 As the Leather industry has affiliation with the PIFD,
there should be linkages with other universities and
institutes as well.
 The initiatives to make leather parks at Sialkot, Kasur
and Charsadda should be taken seriously and proper
work should be done upon them.

 The strategy focuses on the need for the Pakistan
leather industry to brand itself in the international
market. “Leather Pakistan” should be presented as a
brand through marketing initiatives.
 Major trade shows, fairs and other promotional activities
should be used to build our name, and thus improving
the position of “Brand Pakistan”.
 E-marketing- the use of the internet in order to make
people more aware of leather industry in Pakistan
 Provide investment incentives
 Higher duty drawback / tax rebate
 6% R&D subsidy

 Sustainable Pakistan leather sector competitiveness
requires greater concentration on fashion and design
 Government of Pakistan should support the establishment
of a renowned and reputed international lab for leather and
leather products to engage in R&D.
 The industry has some excellent clients in the US and
Europe and building on these with a marketing campaign,
perhaps allied with warehousing assistance, there is
potential for Pakistan to compete for clients with countries
like Turkey who deal in a generally higher price bracket.
 The focus on production of products specifically for the
motorcycle industry by Sialkot producers is a good
example of a specialty that can be promoted worldwide to
draw positive buyer attention to Pakistan.

 Commercialization of livestock farming to make the
standard of breeding practices better.
 The people at the slaughter houses who skin the animal,
should be made more aware of the use of those hides
and skins and how a little cut on the skin can make the
whole skin useless.
 Utilize the skin of aquatic animals, such as the sting ray
fish and the white sharks, as well as crocodiles and
alligators
 More emphasis on the foot wear
 Differentiate products in terms design

 According to Porter's diamond model, domestic rivalry is
healthy but if Pakistan is not very capable of that, the
firms in the industry should atleast try to collaborate and
thus contribute global competitiveness together.
 The cost of production is also very high in Pakistan as
compared to our competitors like China, India and
Bangladesh. This is mainly due to the utilities, import
costs and taxes, so Pakistan can work on that to capture
its lost market

Pakistan Leather Industry: A Historical Overview and Current Status

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