SIALKOT, May 1: Despite imposition of a 20 per cent regulatory duty on export of wet-blue leather and semi-finished leather by the federal government, leather exports from Pakistan to various countries, including China, continue unabated.

Due to this situation, export of leather products’ from Pakistan declined by 33.64 per cent during the last nine months of the fiscal year 2006-2007.

President, Sialkot Chamber of Commerce and Industry (SCCI), Sheikh Abdul Waheed Sandal, stated this while talking to newsmen. SVP Dr Sarfraz Bashir was also present.

The SCCI president said unabated export of raw leather had created shortage of raw leather in Pakistan which has also affected leather products’ exports from Sialkot and Kasur – the main markets of raw leather.

Now leather industry is in severe financial crisis as leather products’ export was declining day-by-day, he said, adding Chinese traders of raw leather have reached Kasur and were purchasing raw leather on cash payment directly from the Kasur-based raw leather manufactures.

He said that the rate of raw leather had increased to Rs70 per feet from Rs40 due to the direct purchase of raw leather from Kasur by the Chinese traders.

Prices of basic raw material, used in the production of leather products, have also gone up to a great extent, he added.

He said according to official statistics, there was a decline of 31.8 per cent in leather gloves exports, 19 per cent decline in export of deferent leather products from Pakistan, especially from Sialkot city during the current fiscal year 2006-2007.

He said this situation has also affected Sialkot’s leather shoe industry, besides, putting Sialkot’s leather garments and leather gloves industries at stake.

He urged the president and the prime minister to impose an immediate ban on export of raw leather of all verities in the larger national interest for saving country’s leather industry from a collapse and disaster as 20pc regulatory duty has now become ineffective.