Leather industry is the cornerstone of Pakistan’s Economy: Ahsan Iqbal

KARACHI, Jan 07 (SABAH): Ahsan Iqbal Chaudhary, Federal Minister for Planning, Development & Special Initiatives, and Inter-Provincial Coordination, visited the Pakistan Tanners Association (PTA) South Zone office in Karachi on Tuesday to engage with key stakeholders in the leather industry. The minister was warmly received by Hamid Zahur, Chairman PTA Central, Danish Aman, Chairman PTA (South Zone), Yousuf Shafiq, Vice Chairman PTA (South Zone), Shoukat Ali, Faisal Rasheed, Chairman of the Law & Order Sub-Committee, and several senior members of the Leather Association.

The visit was part of the Federal Minister’s ongoing efforts to engage directly with industry representatives and address the challenges facing Pakistan’s vital economic sectors. The leather industry, a significant contributor to Pakistan’s exports, has long been regarded as a cornerstone of the nation’s economy, employing thousands and generating substantial foreign exchange earnings.

During the meeting, discussions revolved around key issues, including boosting exports, facilitating exporters, ensuring infrastructure development, promoting healthy environment and maintaining law and order.

The stakeholders emphasized the importance of implementing policies that encourage growth in exports. They highlighted the potential of Pakistan’s leather industry to compete in international markets if provided with the necessary incentives and support. The Minister assured the attendees of the government’s commitment to fostering a favorable environment for exporters and enhancing the country’s export capabilities.

Participants raised concerns about procedural bottlenecks, high costs of doing business, and the need for streamlined policies to facilitate exporters. Ahsan Iqbal acknowledged the challenges and shared the government’s plan to reduce barriers, simplify regulations, and introduce exporter-friendly reforms to ensure a seamless business environment.

The meeting highlighted the urgent need for upgrading infrastructure in industrial zones, including the repair and maintenance of roads, improved water supply, and the establishment of modern facilities. Stakeholders pointed out that outdated infrastructure was affecting productivity and competitiveness. The Minister agreed on the importance of these upgrades and expressed his intent to prioritize such projects under the federal development agenda.

Industry representatives stressed the need for sustainable environmental practices, highlighting the importance of waste management and pollution control in the leather industry. The Minister assured that the government would work towards creating a balance between industrial growth and environmental conservation, ensuring that the sector meets international standards of sustainability.

The discussion also touched upon the importance of maintaining law and order for businesses to thrive. Mr. Faisal Rasheed, Chairman of the Law & Order Sub-Committee, provided insights into the challenges faced by the leather industry in this regard. The Federal Minister promised to coordinate with the relevant authorities to address security concerns and create a conducive environment for industrial activities.

The Federal Minister expressed his appreciation for the Pakistan Tanners Association’s role in representing the interests of the leather industry and emphasized the need for close collaboration between the public and private sectors. He reiterated the government’s commitment to supporting the industry and ensuring that the necessary resources and policies are in place to maximize its potential.

“Exports from the Leather Sector now stand at 85% from the value added sector and 15% from the raw material and further efforts need to be made to jointly increase the export of the leather sector to USD 2 billion by 2029, in line with the vision of URAAN PAKISTAN program”, the minister stated.

Furthermore, the Trade Investment Officers at various embassies of Pakistan were requested to promote a positive image of Pakistan and enhance trade by organizing EPA, PTA and FTA with our key trading partners, like South Korea, Japan, Vietnam and now Bangladesh.

While inviting Minister Ahsan Iqbal to the annual Pakistan Mega Leather Show to be held in Lahore from 26-28th January 2025, Chairman PTA recommended to setup proper slaughtering houses and abattoirs specially for the Eid ul Azha, when around 6 million animals are slaughtered and need proper facilities for the storage of hides and skins available then.

The meeting concluded with both parties agreeing to maintain open communication and collaborate on actionable plans to address the discussed challenges. The Pakistan Tanners Association expressed its gratitude to the Federal Minister for his visit and proactive approach toward resolving industry issues.