Pakistan Tanners Association (PTA) has requested government to include leather industry for DLTL scheme in the new export package announced by the Government for the year 2018-21. Mr. Amanullah Aftab, Chairman, PTA in a statement said that the Manufacturers-cum-Exporters of Finished Leather, who are contributing significantly to the country’s GDP by making necessary highly value additions from Raw Skins to Finished Leather with new innovations after going through the detailed hectic 23 vital procedures for necessary value addition from Raw Skins to Finished Leather are deprived for DLTL scheme in the new export package announced by the Government for the year 2018-21.
The tanning industry of Pakistan is fully competent and capable of producing all types of fashion leather including printed leather, foiled leather, patent leather etc. Pakistan is holding number two position after Italy as far as quality of leather is concerned.
The Chairman, PTA, Mr. Amanullah Aftab also shared that “Finished Leather made of Cow, Buffalo, Sheep & Goat skins” is highly value added and value addition is around 150% or more as finished leather as produced are being sold to high value branded shoes. Leather Industry is the 2nd biggest export oriented Industry in terms of significant contribution to the country’s GDP, besides it is also imperative to clarify here that “finished leather (value added Leather) had the export share was around 38.5% out of total export of Leather Sector of Pakistan was US$ 918.131 (Million) for the year June-June 2016-17.
It was astonished to note that “Dyed & Printed Fabrics” for Textile Sector are included in the new DLTL scheme for next 3 years while the Finished Leather is deprived for the said incentive, which is the similar product/commodity of Leather Industry with necessary innovative value addition from Raw Skins to Finished Leather Form to become eligible for the export to get the precious foreign exchange with higher prices of per SQFT as compared to rest commodities of Leather Sector such as Leather Garments, Leather Products/Footwear/Made-ups etc..
The Chairman, PTA also shared that if the incentive for DLTL is not continued/ included/amended in the new DLTL scheme for “Finished Leather” being mother product of Leather Industry, which is already in heavy declining trend and facing numerous problems/hardship in production & marketing/selling at internationally market would be suffered/hampered to a great extent and resultantly the export of Finished Leather would further be declined drastically. The Chairman, PTA, Mr. Amanullah Aftab also highlighted one of the important aspects that All High Grades of Leather of Cow, Buffalo, Sheep & Goat skins are exported exclusively to the foreign potential buyers/customers specially to International Brands and fetching much higher prices and value addition from raw materials is more 2.5 times.
The Chairman, PTA Mr. Amanullah Aftab also articulated very strongly in view of detailed submission that “Finished Leather” is highly value added product of Leather Industry in terms of fetching precious foreign exchange with much higher average prices is around from @US$ 1.50 PER SQFT to @US$ 3.00 PER SQFT of high quality grade leather as compared to the unit price of per sqft used in rest of commodities of leather sector such as Leather footwear, leather garments, leather made-ups, which cost between @US$ 0.60 per sft to @US@ 1.00 per sqft as inferior quality and easily available in local market abundantly and can be imported without any duty, which is clearly evident for the highly value addition product is Finished Leather of all higher grades selling to Int’l top leading brands of shoes, products/bags etc and certainly yielding precious foreign exchange for the country which is much more than other leather commodities in Pakistan.
It was also shared with the media by the Chairman, PTA that all the above narrations /importance for the inclusion of Dyed / finished leather in the new DLTL scheme was already brought to the notice of Secretary, MOC during a specific meeting held recently and he was convinced with the realization the gravity of the issue/matter and accordingly assured the PTA’s delegation to look into the matter favorably for the inclusion of Dyed / Finished leather in the new DLTL scheme for the export package for the year 2018-21 with the same spirit as announced for rest of commodities of export sectors. Besides, the CEC of PTA has also passed an unanimous resolution during its 4th Meeting held on 09.06.2018 with resentment & disappointment to the elimination of core product of Mother Industry of Leather Sector and demanded strongly to the Government/MOC for immediate inclusion of Dyed / Finished Leather in the new DLTL scheme for export package for the year 2018-21 as soon as possible, so that the genuine exporters/PTA members would also be facilitated in continuation to play its due viable role in strengthening the country’s economy by fetching more precious foreign exchange.
Mr. Amanullah Aftab, Chairman, Pakistan Tanners Association strongly appealed to the Care-taker Federal Minister for Commerce and Secretary Commerce, Mr. M. Younus Dagha for inclusion of this Important Commodity of “Finished Leather” being highly specific value added product of the Industry/country in the NEW DLTL SCHEME for 2018-21 as like “Dyed & Printed Fabrics” of Textile Sector already included in the scheme, for which a detailed presentation on value of finished leather with desired letter with related H.S. codes has already been submitted to Secretary Commerce for early inclusion of this specific item in the export package and incorporation it at the time of issuance of SRO/Notification.