Pakistani tanneries risk closure due to credit problems
13.01.2023 3224

Pakistani tanneries risk closure due to credit problems

Several merchandise destined for the leather industry remain stuck in Karachi port as commercial banks refuse to collect documents due to lack of dollars, writes Worldfootwear.com.

This situation, which keeps tanners waiting for the green light from the National Bank of Pakistan, could lead to the closure of many businesses as the Pakistani leather industry is heavily dependent on chemical imports, Agha Saiddan, former chairman of the Pakistan Leather Workers Association, warned.

Saiddan stressed that the leather sector is the "mother industry" for downstream activities such as clothing, footwear, gloves and leather goods, so the impact of this ongoing problem could put one million people out of work.

In particular, there is a need to import sodium sulfide for leather production, but the requirement for the Ministry of Foreign Affairs and the Ministry of Defense has not yet been met. “We can say that the current government is not interested in exports, and the country is gradually being pushed towards an irreparable disaster. Once closed factories will not be able to resume their work,” Agha Saiddin concluded, urging the Ministry of Finance to find some effective solutions to these acute problems.

Several goods destined for the leather industry remain delayed at the port of Karachi as commercial banks refuse to collect documents due to lack of dollars, writes…
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