The announcement of new partnerships and joint ventures between Pakistan and China in the leather processing and products manufacturing industry is a welcome development that merits enthusiastic support. This collaboration, marked by establishment of manufacturing plants, tanneries and research and development centres signifies a leap forward for our leather sector. As Adviser to the Pakistan Tanners Association, Khalid Waleed indicated, these projects are set to embrace innovative practices and propel local industry to unprecedented heights.
The potential for this partnership was in fact highlighted in June when Association of Guangdong Shoe Manufacturers visited Pakistan to explore feasibility of relocating their operations. Their readiness to invest $5b to $8b highlights potential of Pakistan’s leather industry. Such investment not only promises financial inflows but also transfer of technology, skills and modern practices that are critical for industry’s evolution.
There is no denying that our leather industry, the second most dynamic sector after textiles, has faced some serious challenges in recent years. In the fiscal year 2022-23, leather exports fell by seven percent to $887m, down from $953m the previous year. This downturn was primarily due to an 18% decrease in export of other leather products and an 11% reduction in shipments of leather garments. These figures are a stark reminder of urgent need for revitalisation within the sector and we are confident the Chinese investment will provide much needed impetus it requires.
The synergy between China’s formidable production capabilities and Pakistan’s inherent advantages, such as high-quality leather and lower labour costs, presents a unique opportunity for a mutually beneficial collaboration. It also holds great promise of uplifting our small and medium enterprises.
This journey of joint ventures should continue and cover other important sectors as well. For this, the process of engagement at different levels must continue with focus on concrete results. By diversifying and expanding the scope of partnership, the two countries can take their strategic relationship to new heights.
