KARACHI: The Pakistan Tanners Association (PTA) leadership, including Chairman Hamid Zahur and Vice Chairman Danish Aman, held a comprehensive discussion with Ahsan Iqbal, Federal Minister for Planning, Development, Special Initiatives, and Inter-Provincial Coordination. The meeting, held at PTA’s office, focused on key issues confronting the leather sector.
Chairman Zahur emphasized the urgent need to reinstate the leather industry under a zero-rated tax regime and advocated for maintaining a fixed tax structure instead of transitioning to a final tax regime. He highlighted that the leather sector faces delays exceeding four months in the disbursement of refunds for income tax, sales tax, and duty drawbacks, calling for immediate resolution of these pending payments.
Another critical concern raised during the meeting was the lack of consultation with the business community on policy decisions. Specifically, the PTA highlighted the adverse impact of the 3%, 6%, and 9% liens imposed on delayed export payments due to prolonged shipping times and limited vessel availability. The association proposed a collaborative approach to policymaking, particularly during budget preparations, urging the government to consider recommendations from the leather sector.
The meeting also underscored the role of Trade Investment Officers stationed at Pakistani embassies in promoting the country’s trade interests. PTA urged these officers to foster a positive image of Pakistan and work towards establishing Enhanced Partnership Agreements (EPA), Preferential Trade Agreements (PTA), and Free Trade Agreements (FTA) with strategic trade partners such as South Korea, Japan, Vietnam, and Bangladesh.
Chairman Zahur invited the Minister to the Pakistan Mega Leather Show, scheduled from January 26-28, 2025, in Lahore. He recommended the establishment of modern slaughterhouses and abattoirs, particularly for Eid-ul-Azha, when approximately six million animals are slaughtered. Proper storage facilities for hides and skins are critical for enhancing the value-added leather sector.
The discussion also touched on infrastructure challenges, particularly the inadequate water supply in Karachi, which hampers industrial activities. Minister Ahsan Iqbal assured his personal involvement to address these issues and improve conditions for the leather industry.
Currently, 85% of leather exports stem from value-added products, with the remaining 15% coming from raw materials. PTA aims to elevate total leather exports to $2 billion by 2029, aligning with the Planning Ministry’s ‘Uraan Pakistan’ program.
The meeting concluded on a positive note, with the Minister pledging to revisit these issues in February alongside officials from the Ministries of Commerce, Finance, and FBR. PTA continues its follow-up with the Minister’s Secretariat to ensure the swift resolution of these challenges.