The unabated exports of the raw leather from Pakistan to other countries including china are on its peak due to which, there is a shortage of raw leather in Pakistan. It has also badly affected the leather export products from Sialkot and Kasur, which are the main markets of raw leather in the country.
Now, the leather industry is in severe financial crisis, as the leather products exports are declining day by day. The concerned government functionaries still remain unable to find out any amicable solution of this alarming situation, as the leather industry is on stake.
The Sialkot and Kasur based local perturbed manufactures of leather have expressed grave concern over this critical situation. They told that the Chinese traders of raw leather were busy in purchasing raw leather on cash payment directly from the Kasur based raw leather manufactures.
This situation was aggregating day by day, besides, creating acute shortage of raw leather material in Kasur and Sialkot. Addressing a press conference at SCCI, the office- bearers of Sialkot Chamber of Commerce and Industry (SCCI) had told that there was a great decline of 33.64 percent in the exports of leather products' exports from Pakistan during the last nine month the of the fiscal year 2006-2007 due to this critical situation.
They said that despite the imposition of 20 percent Regulatory Duty on the exports of wet blue leather and semi-finished leather by the federal government, these exports are on peak (from Pakistan to other countries including china), unabatedly.
SCCI office-bearers were of the view that the unabated exports of the raw leather have created shortage of raw leather in Pakistan, which has also badly affected the leather products' exports from Sialkot and Kasur.
They said that the rate of raw leather has increased to Rs 70 Per foot from Rs 40 per foot due to the direct purchasing of raw leather from Kasur by the Chinese traders.
SCCI officials said that according to the official statistics, there is also a great decline of 31.8 percent in leather gloves exports, 19 percent decline in exports of deferent leather from Pakistan especially from export-orients Sialkot city, during the running fiscal year 2006-2007.
They termed this continuous decline in leather exports as a great set back for the national economy. They said that this situation has also badly affected Sialkot's leather shoes industry, besides, putting Sialkot's leather garments and leather gloves industries on stake.
The Sialkot and Kasur based leather manufacturers and industrialists have expressed grave concern over this critical situation and urged President General Pervaiz Musharraf and Prime Minister Shaukat Aziz to impose immediate complete ban on the exports of raw leather's all the verities in the larger national interest for saving country's leather industry from collapse and disaster.
They said that the immediate imposition of all the leather exports was the only solution to pull out Sialkot-Pakistan's leather industry from the clutches of disaster.
They said that the imposition of 20 percent Regulatory Duty on the exports of Wet Blue Leather and Semi Finished Leather by the federal government still remains ineffective.