BEIJING: Pakistan and China are starting joint ventures expected to elevate Pakistan’s leather industry to new heights. The partnerships involve establishing manufacturing plants, tanneries, and R&D centers focused on leather product innovation, Khalid Waleed, advisor to the Pakistan Tanners Association said.
In June, the Association of Guangdong Shoe Manufacturers visited Pakistan to explore relocating their operations to the country, with investments ranging from USD 5 to 8 billion. Pakistan’s leather industry, a vital export-oriented sector and second only to textiles in dynamism, has recently faced competitive challenges, being the only country in the region to see a decline in leather exports, according to a media report.
In the fiscal year 2022-2023, Pakistan’s leather exports fell by 7%, from USD 953 million to USD 887 million. This downturn included an 18% decrease in other leather products and an 11% reduction in leather garments, as noted by the Pakistan Leather Garments Manufacturers and Exporters Association.
China, a leading global producer and exporter of leather and leather products manufactures over 4 billion square feet of leather annually. In 2023, China exported leather, 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 advantages—including high-quality leather and lower labour costs—presents significant cooperative potential. Pakistan’s market also shows strong consumer demand for fashionable footwear and bags. Preferential import policies further create a conducive environment for joint ventures under the China-Pakistan Economic Corridor (CPEC).
These joint ventures are expected to boost the growth of leather-related small and medium enterprises (SMEs) in Pakistan, offering opportunities for modernization and technological upgrades through Chinese investment and support. The enhanced infrastructure and trade routes under CPEC will provide Pakistani leather products with improved access to the vast Chinese market, promising increased sales and market presence. —APP
