China and Pakistan are forming cooperative ventures that might skyrocket Pakistan’s leather sector.
According to Khalid Waleed, advisor to the Pakistan Tanners Association, these partnerships entail establishing production facilities, tanneries, and research and development facilities devoted to the invention of leather products.
The Association of Guangdong Shoe Manufacturers traveled to Pakistan in June in order to investigate moving their business there. These businesses are willing to contribute anywhere from USD 5 to USD 8 billion to the regional economy. The leather industry in Pakistan, the country’s second most active industry after textiles and a vital exporter, has recently had to contend with competitive pressures. According to a media source, it is the only nation in the area to witness a fall in leather exports, indicating a serious problem within the sector.
Pakistan’s leather exports decreased by 7% in the fiscal year 2022–2023, from USD 953 million to USD 887 million. The Pakistan Leather Garments Manufacturers and Exporters Association said that this decline was accompanied by an 18% drop in other leather items and an 11% drop in leather clothing.
China produces more than 4 billion square feet of leather yearly, making it a major producer and exporter of leather and leather goods worldwide. China Leather Industry Association reports that the country exported USD 96.98 billion worth of leather, fur, and related goods in 2023.
There is a lot of room for cooperation when Pakistan’s advantages—such as cheaper labor costs and high-quality leather—combine with China’s industrial skills. The market in Pakistan has a robust demand from consumers for stylish bags and footwear.
In addition, favorable import regulations for these goods foster an atmosphere that is favorable for cooperative projects under the China-Pakistan Economic Corridor (CPEC). With Chinese investment and backing, these joint ventures have the potential to accelerate the growth of small and medium-sized businesses (SMEs) in Pakistan that deal with leather by offering chances for modernization and technical advancements.
