BEIJING: Pakistan and China are collaborating closely to elevate Pakistan’s leather industry to new heights.
Khalid Waleed, advisor to the Pakistan Tanners Association, has highlighted joint ventures aimed at establishing manufacturing plants, tanneries, and R&D centers to drive innovation in leather products.
In June, the Association of Guangdong Shoe Manufacturers visited Pakistan to explore the possibility of relocating their operations, with potential investments ranging from USD 5 to 8 billion.
This initiative comes at a crucial time for Pakistan’s leather sector, which, despite being the region’s second most dynamic after textiles, has recently faced challenges.
Pakistan witnessed a decline in leather exports, dropping by 7% to USD 887 million in fiscal year 2022-2023 from USD 953 million previously. The Pakistan Leather Garments Manufacturers and Exporters Association noted declines of 18% in other leather products and 11% in leather garments.
China, a global leader in leather production and exports, annually manufactures over 4 billion square feet of leather. In 2023 alone, China exported leather, fur, and related products worth USD 96.98 billion, according to the China Leather Industry Association. The synergy between China’s production capabilities and Pakistan’s strengths—including high-quality leather and competitive labor costs—presents significant cooperative opportunities.
Pakistan’s market demonstrates robust consumer demand for stylish footwear and bags, further supported by preferential import policies under the China-Pakistan Economic Corridor (CPEC). These policies create a favorable environment for joint ventures, poised to benefit from enhanced infrastructure and trade routes.
This collaboration is expected to stimulate growth in Pakistan’s small and medium enterprises (SMEs) in the leather sector, offering avenues for modernization and technological advancements through Chinese investment and expertise.
Ultimately, these joint ventures aim to enhance Pakistan’s access to the expansive Chinese market, promising increased sales and stronger market presence for Pakistani leather products.
