Pakistan Leather Industry

A BRIEF REVIEW ABOUT LEATHER INDUSTRY IN PAKISTAN

CATTLE BREEDS ORIGINATING IN PAKISTAN

Following are six main categories of cattle breed in Pakistan

  • Cholistani (cattle)
  • Dhanni (cattle)
  • Lohani (cattle)
  • Red Sindhi
  • Sahiwal cattle
  • Zebu

History of Pakistan leather

At the time of independence there were only a few tanneries producing sole leather and that too at a very small scale. • In the early days of independence some tanneries were established in Karachi • In 1950's some were established in Lahore and adjoining areas. • The 1960's saw the installation of more units in other parts of the country like Multan, Sahiwal, Kasur, Gujranwala and Sialkot. These units were well-equipped with the latest and modern facilities. More advanced units were established in the 1970's and Pakistan started production of finished leather. • The era of 1980's saw a period of improved quality production. • In 1990 the leather sector jumped to become the second largest foreign exchange earner for the country by contributing 10.41 percent toward the total export revenue. • During July-November 2015-16, the leather exports of Pakistan faced a decline of 27 percent while India, which exported 43 percent more leather garments, witnessed 27 percent increase in its leather exports during the same period.

Presently

PAKISTAN is considered to be the hub of producing high quality Leather and Leather Products, and there are about 800 Tanneries in the country actively engaged in producing best quality finished leather of Cow, Buffalo, Sheep & Goat skins. • Pakistan is rich in agricultural products and has a large livestock population which plays an important role in the economy of Pakistan by producing around 13.0 Million Hides and 47.4 Million Skins per annum (2015-16). The quality of goat skins, cow, buffalo hides in Pakistan is satisfactory. The type of sheep skins we have in Pakistan is better in respect of grain, substance and compactness of fibers. Leather manufacturers & exporters are determined to increase export of quality finished leather and leather products. • The industry is playing their positive role in activating WTO with quality consciousness and full sense of responsibilities to uphold the perfect image of Leather Industry of Pakistan. As being the most significant contributor or the country’s GDP and foreign exchange earnings. The Leather Industry of Pakistan is employing more than 500,000 peoples directly and indirectly. (2009-2010) • It contributes 5% of GDP and 5.4% to the overall export earnings of the country and is considered to be the most significant sector.

SWOT ANALYSIS

STRENGHTS

Pakistan is Islamic republic democrat country having unofficial population count approx. 220 millions. All muslims have Qurban Eid occasion once a year where they slaughter/sacrifice minimum one of the animals from Cow, Buffalo Goat and Sheep on that day. Every muslim have deepen wish to sacrifice most beautiful and healthy animal on that day. Since quantity is enough being slaughtered on that day that tanneries full fills almost 60% to 80% of their total year raw materials need and at much cheaper price as well as most easiest way to buy.

WEAKNESSES

More than 90 0r 95% of the total count comes from the knife/hand flayed consequently got flay cuts if animal being cut by the unprofessional butchers. 2ndly, so much quantity of hides and skins are being produced in just only one of two days even that it becomes almost impossible to handle with care all the skins. Consequently, a large number of skins got skins damanged and lost their grain because of sun/heat. Hides and skins are lost at the unorganized ware houses due to skin diseases, malnutritions, and primitive slaughtering techniques.

OPPRUTUNITIES

Pakistan has become hub of leather trade and processing in central Asia. Pakistan neighboring countries like Iran, Afghanistan and many old states of USSR transfer/smuggle their hides and skins to Pakistan by Pakistan because of Pakistan soft border policy with Afghanistan. Now the availability of raw hides has almost become double the count what Pakistan infect produce. Now there is great opportunity for the bulk quantity buyers/importers to buy more from Pakistan. Buyers can buy from Pakistan not only finished leather but also leather made ups like shoes, bags, belts, saddles, gloves, garments, sports goods, etc from world re-knowned manufacturers.

THREATS

Pakistan leather market most of the part consists of unorganized sector. Most of the leather and leather made ups manufacturers don’t have sufficient knowledge to explore world and search for their best match buyers. Raw Hide market is also have same statistics and a large number of animals were died by seasonal diseases as well as some time floods due to heavy rains.• According to sources approximately 1.5 million animals were killed due to the devastating floods in the country.