Major foreign exchange earners for the country. 90% of its products are exported in finished form.

1996-97, the production o was about 14.3 million and export earning amounted to US$ 642 million. 600 tanneries in the formal sector and an equally large number of tanneries in the informal sector. Concentrated in a few clusters of which Kasur (180 tanneries), Karachi (170), and Sialkot (135) are the most important Pakistan has a natural advantage in the area of livestock population

Full-grain Top-grain Corrected-grain Split

Fiscal year 2005-06 2006-07 2007-08 2008-09 2009-10

Buffalos 27.3 28.2 29.0 29.9 30.8

Cattle 29.6 30.7 31.8 33.0 34.3

Goats 53.8 55.2 56.7 58.3 59.9

Sheep 26.5 26.8 27.1 27.4 27.8

Camels 0.9 0.9 1.0 1.0 1.0

70 60 50

Buffalos
40 30

Cattle Goats Sheep Camels

20

10
0

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

1400 1220.121 1200 1008.154 1000 959.146

1129.638

862.903 800

Million US$ 600

400

200

0 2005-06 2006 -07 2007-08 2008-09 2009 -10

COMMODITY

COUNTRY HONGKONG CHINA ITALY KOREA GERMANY TURKEY INDIA SPAIN SOUTH AFRICA VIETNAM

JULY APRIL 2008-09 2009-10 69,349 29,442 28,985 15,930 11,233 9,182 8,116 6,250 6,701 12,545 74,162 32,094 30,659 24,309 9,599 9,382 8,027 7,904 7,287 7,083

% SHARE 28.67% 12.41% 11.85% 9.40% 3.71% 3.63% 3.10% 3.06% 2.82% 2.74%

TANNED LEATHER

S.NO

COMMODITIES

UNIT

JULY-JUNE 2008-09
QTY VALUE IN 000 PKR 3549,169 IN 000 US$ 45,450

2 3

LEATHER: I.Whole hides & skins bovine animal raw & pickled hides & skins (buffalo & cow hides,) lamb, sheep (with or without wool), goat and kid skins. I. Wet blue lamb, sheep, goat, kid and other wet blue skins. I. Hides (buffalo, cow) & skins (lamb, sheep, goat & kid) wet state, dry state, crust leather further prepared (sheep/lamb, after tanned, chomis, patent laminated material leather & paring other waste of leather) Leather garments: Leather Apparel & Clothing LEATHER GLOVES

KGS

44,205,196

SQM SQM

7,668,153 2786,001

2586,461 998,572 7134,202

33,121 12,787 91,358

DOZ DOZ

115,776 62,409

222,640 100,254

2,851 1,284

4 5

LEATHER FOOTWEAR OTHER LEATHER MANUFATURERS: i.Suitcases comp/paten leather, handbags, articles carried in pocket leather, other container o/s of leather/comp, gas kit of leather, washer of leather. ii. Saddlery & harness, leather articles doe machinery, other article leather/comp TOTAL:

PAIRS

5,048,774

1436,704

18,398

NOS KGS

155,572 75,120

65,706 110,290

841 1,412

9,069,796

116,145

FINISHED LEATHER BY TANNERIES LEATHER GARMENTS GLOVES SHOES BAGS

THE FIRST METHOD

slaughteri ng houses
commissio n house

butchers

traders

tanneries bidding for raw skins of animals

THE SECOND METHOD

Raw skins are also imported by tanneries from Kenya, Somalia, Saudi Arabia, Italy, and other European countries.

Raw skin received in salted condition Soaking is done in paddles or drum for about 8 to 12 hours Hairs are removed from the skin by machines or in drums Liming is done in paddles or drums Fleshing is done by machines to remove unwanted fat D/liming or batting is done in drums. Scudding is done by using knife

Degreasing in drums to remove fats Pickling is done in raw skin to make it pickle wet in beige color Tanning is done to the pickle wet skin. Pilling is done after tanning so that chemicals are settled down. Neutralizing Re-tanning Dyeing of the leather in desired color Fixation Pile the wet blue for further processing.

Selection of Wet blue Measured and sorting Processing of skin according to orders Sammying process Wet shaving shaved wet blue is then weighed Natural or dyed crust Pilling Setting out and sammying

Hang dry Moistening machine Vibrator staking machine Toggling Trimming of the leather Final Grading Measuring machine

Cutting department Sewing department Packaging department

 Incident of 9/11

Decline in exports of leather

Cost of doing business in Pakistan has gone up in last 3 years Cost per square foot of leather has increased by 50-60% Increased Supplier prices by 30-40% in last 3 years Export price has fallen down

Damage to livestock in war No travel advice issued by almost all countries Negative image of our country

The Government Decisions

Acute shortage of HR in leather sector No proper trainers and equipment

Load shedding and power failures breakdown Load shedding

Smuggling of live animals to Iran and Afghanistan is one of the major issues.

Three types of wastes Water discharge

Pakistan pavilion was inaugurated in APLF2011 Shoes and leather exhibition held in Guangzhou, china from 1st till 3rd June. Pakistan pavilion also participated in lineapelle fair at Bologna, Italy from 6th till 8th April. All China Leather Exhibition ACLE2011 will be held in Shanghai, China from 6th till 8th September 2011. Lineapelle fair will again take place in Bologna, Italy from 8th till 12th October2011.

Create special economic zones or Leather Park, footwear parks HR for leather The interest rates on normal loans for export industry must be kept low Custom duty and sales tax must be kept low Issue multiple visas to businessmen of Pakistan

Water conservation Use environment friendly chemicals Leather Ministry should be set up

Thank you