Trade Chronicle Jan Feb 2019 Issue

TRADE CHRONICLE
Razzak Dawood inaugurates
5 th PMLS
Advisor to the Prime Minister for
Commerce, Textile and Industry Abdul
Razak Dawood, while inaugurating
the exhibition, has assured the leather
industry of rendering his full support.
The show organised by the Pakistan
Tanners Association (PTA), Pakistan
Footwear Manufacturers Association
(PMFA) and others, brought exhibitors
from Pakistan and other countries
to showcase a wide range of leather
products, chemicals, manufacturing
equipment and accessories.
On the occasion, Abdul Razzaq
Dawood accepted request of leather
industry to finalize immediately formation
of Leather Council and assured
rationalization of import and custom
duty structures in the next budget for
the promotion of leather exports. He
vows to resolve other issues such as
lack of level playing field, reduction in
cost of doing business, refund sales
tax and customs duty refunds, govt
assistance in getting LWG Certification,
75% Govt subsidy on international
lab testing and to remove 3%
customs duty on import of finished
leather.
He said exports of the country were
being increased due to economic policies
of the incumbent government
and added the imports of the country
had been decreased. “Benefits
of devaluation of the currency has
been kicked off and export has been
increased,” he added. He said that
leather industry was an important business
sector of the country, which had
great share in the export.
PTA hopes to double export in four years
Agha Saiddain, Chairman of PTA
while welcoming advisor to the Prime
Minister for Commerce, Textile and
Industry, Abdul Razak Dawood, has
said “today my dream has come true,
to have you with us for which on behalf
of PTA, PFMA, and whole Leather
Sector I am thankful”.
He disclosed total exports of Pakistan
i.e. US$ 23.23 billion during 2017-18
are equivalent to: 17 days exports of
Singapore, 24 days exports of Hong
Kong, 17 days exports of S. Korea,
31 days exports of India, and 250
days exports of Bangladesh. This is
unfortunate that country rich in natural
resources with a population of 220
Million has not been able to keep the
pace with regional countries.
In last 10 years the growth rate of
leather sector recorded:-
In India 63%
China 55%
Bangladesh 224%
But our exports declined by 22%
during same period, he mremarked.
Despite our depressing performance,
still we produce one of the best leathers
after Italians. Our leather is used
by big brands like Harley Davidson,
Geox, IKEA, Bally,Brown Shoes,
Clarks, etc.Our strength is our tanning
sector comprising of 800 tanners
producing finished leather of very high
quality of International Level. Leather
Sector as a whole is 3rd largest foreign
exchange earning sector after
textile and rice, he said.
Leather industry exports during 2017-
18 were recorded as US$ 948.265
million contributing 4% of our export
earnings and providing employment
to about one million people directly
and indirectly. He wondered, despite
the fact that we excel in quality but
failed to improve, even retain our market
share.
Main points of speech
1.Apathy from Government Authorities
Since economic policies of previous
governments were Fiscal Driven instead
of Trade or Export Driven as
such Export Sector was totally ignored.
Ministry of Commerce kept
us busy in meetings, seminars, workshops
of STPF 2012-15, 15-18, 18-
23, but all these aborted premature
without implementation.
“We were eagerly waiting for STPF
2018-23 which was developed after
discussion with stakeholders but
again MOC is seeking suggestions
for STPF 2018-24. One major cause
of our failure is slow decision making
and lack of implementation. We appreciate
that you have defined SOPs
and KPIs for MOC staff and Commercial
staff abroad,” he said.
2.Lack of Level Playing Field
We lack level playing field against our
competing countries e.g. in Bangladesh,they
pay 10% cash assistance
and there is zero tariff for Bangladesh
in most of the countries of world. In
Japan there is zero import duty for
Bangladesh and 8% for Pakistan on
import of leather. India either signed
FTAs or PTAs with most of the countries
and duties on Indian Leather are
less than half in Japan, South Korea,
and other countries. Despite 150
Manufacturing Bonds in Bangladesh
they get 10% cash assistance as was
confirmed by Mr. Muhammad Suleman
Khan Commercial Secretary Pakistan
High Commission, Dhaka.
India under ILDP 10th, 11th, 12th, and
13th allocated Indian Rs 4000 million,
9126, million, 12510 million and
26000 million respectively.All these
amounts were given under the control
of leather council of India. These
funds were spent on grants for mod-
TRADE CHRONICLE - Jan - Feb . 2019 - Page 17