The leather sector is the most efficient foreign exchange earner of the country after textile sector, but the government seemed unaware of the fact that the leather exports have been declining for the last three years. The government policymakers often run out of options in quest for bringing positive changes in the economic outlook as they run after myths and ignore realities. The team of Finance Minister Ishaq Dar is fully engaged in ensuring more and more foreign loans at expensive markup without realizing that the loans of today are the curse of tomorrow. The most vital sector is industry and export of finished products. But, according to the Pakistan Tanners Association, the country has lost 43 percent exports of leather products in three years, depicting the worst scenario in 25 years with regard to this sector. It is unfortunate that the businessmen often look toward the prime minister for help and assistance in the face of problems, showing a horrible fact that the official hierarchy is devoid of any capacity to resolve the issues at their level.
The leather industry is trouble and the official cadre which is responsible for looking after the situation is in hibernation. The business community engaged with leather industry is pinning high hopes on the prime minister who has his own tight political schedule. There is no mechanism to try the officials for dereliction of duty and hold them accountable for lethargy and incapacities. The mouth of corruption is wide open and it will never be filled with a fist of peanuts. As the export of leather products is declining, gap is promptly filled by Bangladesh and India, which are far behind Pakistan in terms of leather quality and leather processing. The lack of interest of the government in the sector is further deteriorating the situation whereas a prompt government action is required to arrest the falling leather exports. The exports recorded a decline of 27 percent in eight months during the last fiscal year.
The Indian government is working in full gear to capture the European market, not only of the leather products, but also textile and sports sectors. On another note, the Pakistani industry is facing various impediments, including electricity crisis and overlapping tax regimes. According to experts, over Rs 250 million worth of sales tax and duty draw backs refund claims have stuck up with the government, creating a liquidity crunch. There is no forum to file a petition for early release of funds. Bangladesh has achieved a growth of 105 percent in leather exports during the last three years and time is running out for the Pakistani policymakers to stop phasing out the country’s presence in the international market.
