The Pakistan Footwear Manufacturers Association (PFMA), in collaboration with Pakistan Tanners Association (PTA), inaugurated the 7th Pakistan Mega Leather show 2022 organized with the support of Pakistan Gloves Manufacturers and Exporters Association (PGMEA) and Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA) in Lahore expo centre today. The event was graced by Mr Zahid Hussain, Chairman, PFMA, Mr Amanullah Aftab- Chairman PTA, Mr Tasawar Hussain, Chairman, Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA), Mr Amjad Hussain Sheikh, Chairman, Pakistan Gloves Manufacturers & Exporters Association (PGMEA), Mr Muhammad Musaddiq Convener PMLS-2022, Mr Rashad Islam., Sr. Vice Chairman, PFMA, Co-Convener, Steering Committee of Pakistan Mega Leather Show-2022 and members of Diplomatic Corps, Foreign Guests along with members of all Sector of Leather Trade.
Pakistan Mega Leather Show 2022 has attracted many international customers towards the tremendous potential in Pakistan’s leather sector and to provide a viable platform for nurturing stronger ties or collaborations between the allied industries of the Leather Sector of Pakistan. The event also features a special exhibition of the high-quality products produced by the leather Footwear-Manufacturing industry and leather goods of Pakistan.
The PMLS 2022 has attracted many potential buyers and investors from Italy, Germany, Thailand, Spain, France, Turkey and Netherlands. The rapid growth of this industry reflects a 5% increase in exports of the Footwear Sector during 2020, and it has attracted. It will continue to attract many international buyers to invest in Pakistan. These investments will improve the technical skills, productivity and export of Footwear products.
PFMA Chairman Mr Zahid Hussain thanked participants for their support to make this event a big success. In his speech, He praised Government support towards the Footwear industry in enhancing the Rebate on Footwear exports from 1.82% to 4.70%. Rebates for the growth of exports are essential to compete with our region’s competitors. If the rebate is eliminated or reduced from the existing percentage, it will harm Footwear’s export. We request the government continue giving rebates and ensuring timely refunds and LTLD to exporters.
Chairman PFMA has stated, “the Footwear industry requires an extension of scheme related to local taxes and levies drawback by extending LTLD scheme for next 3 years, waving off Condition of 10% growth to qualify for grant of balance 50% and rate of LTLD be enhanced at 4%, Rationalization of Custom Duty on Footwear Raw Materials, concessionary tariff rates on electricity by including PFMA name in the List of Export Oriented Sector Associations / Annex A to FBR Circular No. 04 of 2020 – Operations (Sales Tax) with retrospective effect from the date of FBR Circular and allocation of 5 Acre Land and financial grant for the establishment of Pakistan Footwear Institute in Lahore as promised by the Ministry. Pre-Feasibility of Pakistan Footwear Institute has been forwarded to the Ministry of Commerce on 28 Sep 2021. We are optimistic that the government will keep up its promises and honour its commitment to facilitate Footwear Industry by making it the leading export sector of Pakistan”.
PTA Chairman Mr Amanullah Aftab welcomed the Honorable foreign delegates and stakeholders. He took the opportunity to share Leather industry essential issues that required Government attention to resolve priority. He stated, “with support and cooperation of Ministry of Commerce, finished leather goods of cow, buffalo, sheep & goat skins export has witnessed the steady growth of 39% from July-Nov 2021 compared to last year. It is encouraging our countrywide members to vigorously commit to further expansion to promote exports of finished leather goods. But there are some areas where the Leather Industry seeks additional support from the Government side like no incentive has been announced in recent STPF 2020-25, allocation of required funds from EDF for 50% subsidy for the Individual Treatment Plants at Tanneries in Pakistan, which is a fundamental requirement for Leather Working Group. This incentive of Rs.500 million for Treatment plants for due reimbursement effective from 2015 till 2022, who already established their treatments at Tanneries, was allowed in last STPF 2009-2014 but unfortunately not continued in recent STPF 2020-2025. Similarly, Rs.900 million for the Treatment Plants under construction effective from 2022 onward for facilitation to member exporters concerned.
Government must give a 50% subsidy on Freight Charges, which has already been increased exorbitantly from 200% to 300% during COVID-19, adversely affecting the Leather industry growth in the country. The industry is also seeking a reduction in Duty Structure on Basic Tanning Chemicals, which is essential ingredients for the manufacturing of finished leather with innovation, allocation of remaining funds from EDF out of total requisition for Rs.133 million for International leather Fairs. He also requested an increased subsidy percentage from 25% to 50% at least for participation in International Leather Fairs around the globe by PTA member exporters, a universal tested tool for comprehensive & aggressive marketing for promoting exports.
Pakistan Footwear and Tanning Industry have shown promising growth as the government has introduced concessional policies and support. As the industry enters into the next phase of development, it faces different challenges now, requiring customized tariff policies and subsidy structures to facilitate the local industry to comply with international standards and competition. With a resolution of these issues, the Footwear and Leather Industry will be on the right track to prosperity by attracting more investments and raising the bar of Footwear Industry standards.