Leather Industry in Pakistan
TABLE OF CONTENTS
EXECUTIVE SUMMARY 9
INTRODUCTION 11
a. OVERVIEW OF THE LEATHER INDUSTRY 12
b. CATEGORIES OF LEATHER INDUSTRY 14
c. TANNED LEATHER 15
d. PAKISTAN’S LEATHER INDUSTRY 17
CONTRIBUTION AND IMPORTANCE OF LEATHER INDUSTRY TO PAKISTAN ECONOMY 17
e. CONTRIBUTION OF LEATHER INDUSTRY TO ECONOMY OF PAKISTAN 17
f. LEATHER PLAYS A VITAL ROLE IN THE ECONOMY OF PAKISTAN 21
g. PAKISTAN’S TRADING PARTNERS 22
h. EXPORTS OF LEATHER 22
i. GLOBAL IMPORTS 30
STRUCTURE OF THE INDUSTRY 30
j. LEATHER GARMENTS 30
k. LEATHER GLOVES 32
l. FOOTWEAR INDUSTRY 34
ANALYSIS OF THE INDUSTRY 34
m. PORTERS DIAMOND MODEL 34
n. SUPPLY CHAIN MANAGEMENT OF LEATHER INDUSTRY 37
o. SWOT ANALYSIS OF THE PAKISTAN LEATHER INDUSTRY 40
p. PORTER’S COMPETITIVE FORCES 41
WTO IMPACT ON LEATHER INDUSTRY 62
IMPACT OF GLOBALIZATION ON LEATHER INDUSTRY OF PAKISTAN 72
ISSUES / PROBLEMS 75
EXECUTIVE SUMMARY
Leather industry is the second largest export-earning sector of Pakistan after textiles, and this sector is contributing around $800 million a year but has the potential to multiply volume of exports with the improvement of quality and diversification in different range of products, specially garments and footwear.
Out of the seven major exports of Pakistan, Leather is one of the major contributors. Although the industry started it journey way back in the 1947 since then it has moved from exporting raw hides and skins to more value added products.
Leather industry may major areas includes leather garments, leather gloves and leather footwear. According to Pakistan Tannery Association in July to December2006 is worth US $ 443,110 (000). This includes leather, leather apparel and clothing, leather gloves, leather footwear and other leather manufacturers.
Porter's diamond-model is one of the renowned models of regional economic development programming. Porter measures a region's competitiveness on level of productivity and productivity growth. Porter identified four geographically development
EXECUTIVE SUMMARY 9
INTRODUCTION 11
a. OVERVIEW OF THE LEATHER INDUSTRY 12
b. CATEGORIES OF LEATHER INDUSTRY 14
c. TANNED LEATHER 15
d. PAKISTAN’S LEATHER INDUSTRY 17
CONTRIBUTION AND IMPORTANCE OF LEATHER INDUSTRY TO PAKISTAN ECONOMY 17
e. CONTRIBUTION OF LEATHER INDUSTRY TO ECONOMY OF PAKISTAN 17
f. LEATHER PLAYS A VITAL ROLE IN THE ECONOMY OF PAKISTAN 21
g. PAKISTAN’S TRADING PARTNERS 22
h. EXPORTS OF LEATHER 22
i. GLOBAL IMPORTS 30
STRUCTURE OF THE INDUSTRY 30
j. LEATHER GARMENTS 30
k. LEATHER GLOVES 32
l. FOOTWEAR INDUSTRY 34
ANALYSIS OF THE INDUSTRY 34
m. PORTERS DIAMOND MODEL 34
n. SUPPLY CHAIN MANAGEMENT OF LEATHER INDUSTRY 37
o. SWOT ANALYSIS OF THE PAKISTAN LEATHER INDUSTRY 40
p. PORTER’S COMPETITIVE FORCES 41
WTO IMPACT ON LEATHER INDUSTRY 62
IMPACT OF GLOBALIZATION ON LEATHER INDUSTRY OF PAKISTAN 72
ISSUES / PROBLEMS 75
EXECUTIVE SUMMARY
Leather industry is the second largest export-earning sector of Pakistan after textiles, and this sector is contributing around $800 million a year but has the potential to multiply volume of exports with the improvement of quality and diversification in different range of products, specially garments and footwear.
Out of the seven major exports of Pakistan, Leather is one of the major contributors. Although the industry started it journey way back in the 1947 since then it has moved from exporting raw hides and skins to more value added products.
Leather industry may major areas includes leather garments, leather gloves and leather footwear. According to Pakistan Tannery Association in July to December2006 is worth US $ 443,110 (000). This includes leather, leather apparel and clothing, leather gloves, leather footwear and other leather manufacturers.
Porter's diamond-model is one of the renowned models of regional economic development programming. Porter measures a region's competitiveness on level of productivity and productivity growth. Porter identified four geographically development