Pakistan leather sector has urged the government to reduce taxes, simplify compliance procedures and introduce duty relief on raw materials in the upcoming FY2026–27 budget to strengthen export performance and improve global competitiveness. Industry representatives made these demands during a meeting with Commerce Minister Jam Kamal Khan in Islamabad.
During discussions, stakeholders highlighted that Pakistan’s leather industry continues to face structural challenges despite having a strong livestock base and established manufacturing capacity. They emphasized that leather goods such as garments, gloves, footwear and handbags have strong export potential if production costs and regulatory burdens are reduced effectively.
Read more : Representatives of leather industry share concerns with Jam Kamal
Moreover, industry representatives raised concerns over multiple layers of taxation, inspections, approvals and certifications imposed by federal, provincial and municipal authorities. They argued that these overlapping requirements increase production delays and raise operational costs, ultimately reducing competitiveness in international markets.
In addition, participants proposed the introduction of a harmonised compliance system along with a one-window taxation mechanism to streamline regulatory processes. They stated that such reforms would significantly improve ease of doing business and allow manufacturers to focus more on production, innovation and export expansion.
Read more : Pakistani auto sector engages with Chinese industry at Beijing expo
Furthermore, the delegation pointed out rising input costs, high import duties on raw materials and financing difficulties that continue to limit industry growth. They stressed that without affordable access to materials and improved financial support, export-oriented industries may struggle to expand their presence in global markets.
Meanwhile, the leather sector also identified major growth opportunities linked to Pakistan’s livestock resources and value-added manufacturing potential. Industry leaders urged policymakers to adopt tariff rationalisation, duty adjustments and targeted tax relief measures to unlock export growth and strengthen the country’s industrial base.