ISLAMABAD, Nov 22 (INP-WealthPK): The export of leather items from Pakistan increased by 2.70% in the first four months of the current fiscal as compared to the corresponding period of the previous financial year, WealthPK reports.
According to the data released by the Pakistan Bureau of Statistics, the volume of the export of leather items was recorded at $212.516 million in the first four months of the current financial year against $206.937 million in the same period of the previous fiscal, showing an increase of 2.70%.
Mohammad Iqbal Awan, the secretary general of the Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA), told WealthPK that the industry needed to implement a transformation strategy. He stressed the need for setting up infrastructure and devising the legal and regulatory framework by the government for the industry to flourish.
On a year-on-year basis, the export of leather items increased by 1.83% and reached $53.471 million in October 2022 as compared to $52.510 million in October 2021.
On the other hand, the country’s monthly leather exports decreased by 3.43% and dipped to $53.471 million in October 2022 as compared to $55.370 million in September 2022.
Iqbal Awan said that seasonal factors were the main reasons for the decrease in the export of leather products on a monthly basis. He added that seasonal factors reduced the demand for leather products.
The export of leather garments decreased by 0.98% and dipped to $106.193 million in the first four months of the current fiscal as compared to $107.246 million during the corresponding period of the previous financial year.
On a year-on-year basis, the export of leather garments decreased by 4.81% in October 2022 and was recorded at $25.471 million against $26.759 million in October 2021.
On a month-on-month basis, Pakistan’s leather garments export decreased by 8.12% and dipped to $25.471 million in October 2022 as compared to $27.721 million in September 2022.
Likewise, the export of leather gloves increased by 7.55% from $93.630 million to $100.703 million in the first four months of the current fiscal. However, the export of other leather products decreased by 7.28% from $6.061 million in the first four months of the current fiscal to $5.620 million in the same period of the previous financial year.
On a month-on-month basis, the export of leather gloves from the country witnessed an increase of 0.11% and reached $26.310 million in October 2022 as compared to $26.281 million in September 2022.
The export of leather gloves increased by 8.46% and reached $26.281 million in October 2022 as compared to $24.258 million in October 2021.
The country’s total footwear export increased by 31.06% and reached $13.941 million during the first four months of the current fiscal as compared to $47.708 million in the same period of the last year.
The leather sector is the second-largest industry in Pakistan. It plays a pivotal role in earning foreign exchange for the country. The industry contributes approximately 5.4% to export earnings and represents a highly dynamic value-added sector that is job oriented. More than 500,000 workers are directly associated with the leather sector.
The economies of the neighbouring Asian economies, such as China and India, have shown significant growth despite changing circumstances around the world. It is also possible for the economy of Pakistan to grow at a faster rate, but the political uncertainty, the socioeconomic environment and the shortage of modern technology hampering such efforts.
China is the largest producer of footwear and leather goods while Pakistan produces excellent leather for big brands with lower labour costs, so there is immense potential for cooperation between the two countries to benefit each other, according to WealthPK research.
