KARACHI: Farmers may be found discouraged into abandoning rearing animals for livestock sector as its export brings little benefit to them, the people in general and to the industry itself. There is a misconception that poor farmers get better value of their animals being exported to Afghanistan and other countries. In fact, exporters of live animals buy animals from poor farmers against a minimal cost in comparison to what they earn from their exports. Export of live animals has increased the input costs of leather factories and many other industries that have use of animal hide. “Due to export of live animals, many industries are suffering the shortage of raw materials. Tanning industry, leather garment, footwear, gloving, sports goods, casing, wool and poultry industry,” said Agha Saiddain, Senior Executive of Pakistan Tanners Association (PTA). The price of value added products made of cow hide is 70% higher when converted into finished leather. “We are out from billion dollar export club and leather sector has witnessed around 28 percent decline in volumes and around 13 percent in value during FY January to June 2016, PTA executive said. Additionally, Pakistan was facing competition with under developed countries like Bangladesh, besides competing with the developed countries. Pakistan’s exports to European Union (EU), after the EU has granted Generalized System of Preferences plus status to Pakistan, have showed northward trend. This status has allowed almost 20 pc of Pakistan’s export to enter the EU market at zero tariff and 70pc at preferential rate. As per a six year old statistics, export of Pakistan’s leather’s sector stood at around yearly $1.10bn. The leather sector exports have declined 19.25 percent during the last six fiscal years. Our exports are stagnant at around $987 million, Pakistan has lost around 40 percent global market share whereas the global growth rate from 2007-08 to 2015-16 was around 44 percent. The global market has grown to $139.18 billion whereas Pakistan exports reduced by 20 percent. The government should stop smuggling of live animals through Chaman and Khyber Pakhtunkhwa, PTA executive said. An average number of export of live animals per year stands as buffalo 60,000, pure breeding animals 5,000, sheep 24,000 and goat 23,000. Evidently, the same number of buffalos and cows, if sold in domestic market, fetches more revenue and accelerates our economy, Saiddain said. Moreover, Pakistan is exporting animals that could be used for breeding purpose in domestic farming so as to enhance the number for future reproduction and its export can cause acute shortage of beef and meat in the domestic market and prices will jump high beyond the reach of common man, Saiddain said. Our livestock sector is contributing more than 11 percent to agriculture sector and Gross Domestic Products can face serious set back, if large quantities of adult animals are exported from the country, Saiddain warned. “The Ministry of National Food Security and Research is mainly responsible for policy formulation, economic coordination and planning, in respect of food grain and agriculture. But, it has been redundant have failed to take measures to stop live animals smuggling”, he regretted. Many leather sector players believed that Pakistan was being rated at number two-position after Italy for quality of leather and it was not difficult for Pakistan’s leather players to achieve the same growth rate of 47 percent. On other hand, zero percent duty in leather exports to Bangladesh and India from Japan has dented Pakistan’s exports. In contrary, there was 8 percent to 16 percent duty on country’s exports in Japan. India alone has injected Rs4, 000m, Rs9, 130m and Rs12, 510m under 10th, 11th, and 12th Indian Leather Development Plans respectively. Export of Halal Beef/Meat may be encouraged by setting up modern slaughterhouses. Pakistan has a very meager share in Halal Market. Presently, the share of Brazil, India and Australia is 54%, 11 percent, and 9 percent respectively, against Pakistan’s share, which is as less than 5 percent. Most of the countries dependent on imported Halal meat are Saudi Arabia 47%, UAE 80%, Kuwait 62%, Oman 70%, Qatar 78%, Bahrain 64%, Iran 50%, and Afghanistan 40%. All these countries are very close to Pakistan and we can capture major share of Halal meat market of $2.99bn. Government should reduce import duty from 20 percent to 10 percent specifically on Chromium Sulphide, Formic Acid, Flat Liquors and Buffing Papers.