Leather exports decline by 6.68 percent during July-October 2020

LAHORE: The overall Pakistan leather sector's exports registered a decline of 6.68 percent to US$271,233 million during July-October 2020 as compared to US$290,637 million of the corresponding period of the last year (2019). According to details, the finished leather exports witnessed a substantial decline of 46.89 percent in quantity term to 3,205 million square feet as compared to 6.035 million square feet of the corresponding period of last year. Similarly, in terms of value, the finished leather export declined by 38.37 percent to US$43.606 million during the period under review as compared to US$70.759 million of the last year.

However, the exports of leather apparel and clothing marginally improved by 0.36 percent to US$100,304 million during July-October 2020 as compared to US$99.941 million of the same period of 2019. Likewise, the exports of leather gloves in term of quantity decreased by 4.27 percent to 1.863 million dozens as compared to 1.946 million dozens of last year whereas in terms of value, the exports of leather gloves registered an increase of 9.71 percent to US$85.104 million against the last year exports of US$77.572 million.

Though, the leather footwear export in terms of quantity increased by 23.47 percent to 2.557 million pairs during the period under review as compared to 2.071 million pairs exported during same period of last year yet in terms of value, the footwear exports declined by 4.60 percent to US$36.769 million as compared to US$38.540 million of last year. The export of other leather goods also increased by 42.48 percent to US$5.450 million as compared to US$3.825 million during the same period.

The industry sources attributed the decline in finished leather exports to the tariff barriers imposed by the US administration against China which was the leading importer of Pakistani leather. The US tariff measures coupled with COVID-19 pandemic in America as well as in European countries adversely impacted the exports of leather goods from China, the sources added.

Copyright Business Recorder, 2020