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Pakistan: tanneries risk closure due to credit issues

Jan 12, 2023 Pakistan
Pakistan: tanneries risk closure due to credit issues
Several goods destined for the tanning industry remain detained at the Karachi Port because commercial banks are refusing to collect documents due to the non-availability of dollars
This situation, which is making tanners wait for a green light from the Pakistan National Bank, might lead to the closure of many businesses, as the Pakistani tanning industry is highly dependent on imported chemicals, warned the former Chairman of the Pakistan Tanners Association, Agha Saiddain, in declarations to Brecorder.

Saiddain stressed that the tanning sector is the "mother industry" of downstream activities such as the manufacturing of garments, footwear, gloves and leather goods, so the impact of this ongoing issue may put one million people out of jobs.

Specifically, there is a need to import sodium sulphide for leather processing, but the requirement made to the Ministry of Foreign Affairs and the Ministry of Defence has yet to go through. "We can say that the current government is not interested in exports, and the country is gradually being pushed towards an irreparable disaster. The factories, once closed, will not be able to resume their operations", concluded Agha Saiddain, while calling on the Finance Minister to find some workable solutions to these acute problems.


Image Credits: leathermag.com

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