OUR manufacturing industry is heavily dominated by textiles and leather industries. The leather industry is the second biggest export-oriented industry in the manufacturing sector and third in the overall exports of Pakistan.

The current value of semi-finished leather and its byproducts’ sales is over Rs20 million, 65 per cent of which consists of tanning and dressing of leather only.

The industrial chain of the leather industry is tremendously long, which covers leather-making, shoe-making, clothes-making, leather products, fur products, as well as many related sub-industries like leather hardware, leather chemical, leather machinery, and shoe material.

The most outstanding benefit generated by the leather industry is its ability to take in redundant urban labour. It is providing direct employment to around 250,000 workers currently, out of which only 0.2 per cent has formal training.

Unfortunately, neither any well-thought-out efforts have been made out in the past nor has the importance of this sector ever been recognised by public and private sector.

Pakistan is losing its market share year after year, which is increasing the share of its competitors: India, Bangladesh and China.

Fruits of the latest aesearch and sevelopment and innovations are not reaching Pakistan. However, a few firms of this industry have increased product diversification on their own.

Pakistan faced 34 per cent decline in leather goods export last year, while India witnessed 20 per cent increase within the same period.

The Indian government has taken positive steps for its leather industry. Today, Indian leather exporters have been able to increase 28 per cent exports.

Pakistan will only turn into a raw skin seller if the shift of technology and innovation remain away from its leather industry for the upcoming years.

The cost of electricity in Pakistan is twice that of India, Bangladesh, China and Turkey. Leather manufacturing is an uninterrupted process that requires a continuous supply of gas or else valuable stocks may become rancid due to gas suspension.

The industrial sector has been facing gas supply shutdowns for the last two years. India and Bangladesh cannot stand in leather quality to Pakistan but they are still enjoying multinational investments due to stable law and order conditions.

According to the Beijing Times Magazine, “China’s leather industry is enhancing its competitiveness by transforming its growth pattern.

In the next 10 to 20 years, China will change from a big leather production country into a real brand titan.”

The leather industry of Pakistan faces similar problems just like any other industry in the country but it has massive potential for providing more employment, growth and exports than any other industry.

S.M. FAIZAN TARIQ Karachi