Leather policy demanded

LAHORE - Exports of leather sector can get five times boost to cross the figure of $ 5 billion if the government announces incentives to it similar to textile sector, Pakistan Tanners Association Agha Saiddain Chairman Agha Saiddain said here Monday.
He said that the Textile Policy is innovative and full of vision. Federal government, Federal Minister for Textile Industry, Rana Farooq Saeed Khan and his team deserve appreciation for their revolutionary announcement of Textile Policy 2009-14.
He said it is now upto Textile Sector to reap the benefits of the policy and take their exports to the US$ 25 billion target set by the ministry.
The Federal Minister of Commerce in his speech on Trade Policy 2009-10 stated that a comprehensive leather and leather products export plan in consultation with major players of leather sector will be announced.
Agha said that the government should immediately announce leather policy to control further decline in exports.
He said that leather exports recorded decline of 29.44% during the year 2009-10 which is alarming. India, China and Bangladesh saved their leather sector from global recession by allowing special incentives to the leather sector in the name of Special Relief Package.
India alone allocated Indian Rupees 1312 crore for rehabilitation of their leather sector under 10th and 11th leather plan, he added. Agha said that leather strategy report created after consultation with all the stake holders of leather sector under the supervision of M/s J. E. Austin is already submitted to the Federal Ministry of Industries.
He further added that refinance at lower rate of 5%, exemption of load shedding, duty free import of tanning and footwear machinery, financial grant for small units, 50% financial assistance to bear the interest cost on imported machinery, and financial assistance for setting up treatment plants in individual tanneries may be announced without any further waste of time.
He said benefits of leather and leather products making trickle down from top to farmer. He said Pakistan has a golden opportunity to use raw skins of Central Asian States, Middle East and Africa where tanning industry is not so advanced. At present this benefit goes to China and India.