Minister urged to unlock full export potential of leather industry

ISLAMABAD: Federal Minister for Commerce, Jam Kamal Khan, on Thursday held a detailed consultative meeting with representatives of Pakistan’s leather industry to discuss export performance, competitiveness challenges, taxation pressures, market access issues, and reform proposals aimed at strengthening industrial growth and export potential.

During the meeting, industry representatives highlighted that despite Pakistan’s strong livestock base, well-established manufacturing expertise, and significant export capacity in leather garments, gloves, footwear, handbags, and other value-added products, the sector continues to face multiple structural constraints.

They pointed out that high production costs, fragmented compliance requirements, and elevated taxation levels are undermining the industry’s global competitiveness.

The delegation expressed serious concerns over the cumulative burden of multiple inspections, approvals, certifications, and taxation imposed by federal, provincial, and municipal authorities. They stressed the need for a simplified and harmonized compliance framework, along with the introduction of a one-window taxation system to improve ease of doing business and reduce operational inefficiencies.

Rising cost of doing business remained a key concern, with stakeholders highlighting difficulties in import financing and high duties on industrial raw materials. According to participants, these factors are adversely affecting export competitiveness and constraining the sector’s expansion in international markets. The industry also presented preliminary budget proposals, including tariff rationalization, reduction in duties on raw materials, and tax relief measures for export-oriented units.

Participants emphasized that exporters require facilitation across the broader industrial ecosystem, including affordable access to inputs, improved financing facilities, enhanced market access, and greater regulatory efficiency.

They further underscored the untapped export potential of Pakistan’s leather sector, citing opportunities linked to the country’s large livestock base, value chain expansion, and deeper penetration into regional and global markets.

Federal Minister Jam Kamal Khan acknowledged the concerns raised by stakeholders and stated that improving Pakistan’s export competitiveness would require both immediate facilitation measures and long-term structural reforms in taxation, market access, financing, and industrial productivity.

He reaffirmed the Ministry of Commerce’s commitment to continued engagement with industry stakeholders to advance practical reforms and strengthen export-oriented manufacturing sectors. The meeting concluded with a consensus on sustained public-private collaboration to address sectoral bottlenecks and unlock the full export potential of Pakistan’s leather industry.

Copyright Business Recorder, 2026