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BM. Before I proceed for
further queries, kindly throw light on the association being
practiced under your good guardianship?
Ans: Pakistan Tanners Association (PTA) is a prominent Licenced
Trade Body. It is the 2nd largest export earning sector
representing highly dynamic and value added industry in leather
and leather products besides being job oriented sector. The
industry employs about 200,000 people directly, producing fine
quality finished leather for export as well as for home
consumption. It contributes 5% of GDP and 7% to the overall
export earnings of the country and is considered to be the most
significant
factor which plays viable role in revamping economic spectrum of
the country. 259 Members currently registered with Pakistan
Tanners Association from all over the country are actively
engaged in manufacturing and fully geared towards promoting
export of quality finished leather and leather products on
modern pattern as per international demand and are playing their
positive role in earning much needed foreign exchange by
invigorating country's exports. They are courageously prepared
to meet the challenges of WTO regime and other global pressures
with quality consciousness and full sense of responsibilities to
uphold the impeccable image of leather industry within the ambit
of national policies, rules & regulations and international
conditionalities.
BM. Kindly tell me to how you participate in international
fairs & exhibitions from this platform?
Ans: PTA organizes The International Fairs in different
countries annually as per EPB's allocation with subsidy @50% of
total Space Rent and cost of construction of each stand for
participation of PTA's intending members in Pakistan Pavilion of
each fair during the year.PTA disseminates this information
through its Circular amongst its members for participation in
the International Fairs & Exhibitions through inviting
Applications in such fairs. On receipt of applications the same
are scrutinized by Int'l Fairs Sub Committee of PTA and
necessary request is then made to the Fair Organiser concerned
to book the required quantum of Space for participants of
Pakistan Pavilion in the said Fair which is normally 12 Sq.m per
stand. After requisite booking of space selection of
participants is made through balloting by Int'l Fairs
Sub-Committee in the presence of the applicants concerned and
stand numbers allocated to them as a result of balloting and
intimated to all the participating applicants accordingly.
BM. What are your valuable comments on SBP's rise in ERS
mark-up rate from January? Did it affect your sector?
Ans: Our association and other value-added export sectors have
been urging the government to reduce the mark-up rate on export
re-finance. The SBP instead of lowering the same has raised the
rate first from 6 percent to 7 percent and soon thereafter from
7 percent to 7.5 percent, it's a wave of lamentation. I think
that the mark-up rates under EFS were already on the higher side
and there was no justification for a further increase. The cost
of doing business will increase further and Pakistani products
will be uncompetitive in the world market. The government should
discuss with the stakeholders of the leather sector in detail
the road map for re-habilitation of this sector as in 12-month
of financial year 2008-09 overall decline in exports of leather
sector was recorded at 22.24 percent. The most alarming thing is
that this declining trend has continued in the current financial
year and in last 5 months the exports of leather sector have
further dropped by 25.53 percent.
BM. Is government playing any significant role for the
promotion of business, exclusively in the same sector, you are
focusing?
Ans: Our government is still not taking any step towards giving
benefits to the leather export sector, while the Indian
government takes timely steps for its leather industry like
relief package of Indian Rs 4,000 million for 10th leather plan
and Rs 9130 million for 11th leather plan and with these
incentives the Indian leather exporters have become able to
enhance 27 percent export.
BM. Lets talk about your company. How much the cleaner
environment is necessitated to develop sports?
Ans:. For your kind knowledge it has been one of my best
endeavored to underscored the importance of creating a better
and cleaner environment which in turn, which help in the
promotion of sports and development of a healthy society. I
think there is no doubt playing grounds were important for the
promotion of sports, but better and cleaner environment was also
essential for the development of sports and healthy activities.
One could not improve without the development of the other.
BM. As you know that skin problems in slaughtering animals
largely affect this sector. How do you take on that?
Ans: The study was conducted in a large canopy and samples were
collected from slaughter houses, hide markers and tanneries and
also considered their grading system for study results. It found
that the grading system was different for each species at all
three levels. The researchers had taken the livestock census
figures of 2006 for study. It has found that the total
production of goat skin in Punjab is 8044480 per year. If all
the goat skins are of grade I then the value of the goat skin
would be Rs3217.79 million at the price of Rs400 per skin.
However, according to the study findings the percentage of
different grades from Grade I to Grade V is 40.45, 42.16, 7.9,
5.19 and 4.3 per cent. The Grade V skin was termed as rejected
grade. So that the total value of goat skin was calculated on
the basis of their percentage of grades was Rs2645.27 million
with a loss of Rs572.52 million which is 17.70 per cent of the
total value.
The total sheep skin production in the province is 2460240 per
annum. Sheep skins are graded into six grades from Grade I to
Grade VI and the last grade was termed as rejected grade which
could not be used for any leather product. If all the goat skins
are of Grade I then their value would be Rs 984.09 million at
the price of Rs400 per skin. But according to the study
findings, the percentage of Grade I to Grade VI is 45.5, 29.6,
7.7, 5, 5.3 and 6.9 per cent respectively. So the total value of
sheep skins calculated on the basis of these percentages of
grades is Rs830.23 million with a loss of Rs153.86 million which
15.63 per cent of total value. Similarly, the total production
of cattle hides in Punjab is 2937584 per year and it had also
been graded into six grades. If all the cattle hides are of
grade I then the value of the cattle hides would be Rs 6242.36
million at the price of Rs2125 per hide. According the findings
of the study the percentage of different grades skins is 1.5,
1.2, 28.1, 43.98, 18.1 and 7.1 per cent respectively. Thus the
total value of cattle hides calculated on the basis of these
percentages of grades is Rs4922.78 million with a loss of
Rs1319.58 million which is 21.13 per cent of total value. The
total production of buffalo hides in Punjab is 3942026 per year.
It had also graded in to six grades from Grade I to Grade VI. If
all the buffalo hides are of Grade I then the value of total
buffalo hides would be Rs3744.92 million at the price of Rs950
per hide. However, the study found that the percentages of
different grades are 44, 5.09, 13.5, 16.4, 2.9 and 18.11 per
cent respectively. Therefore the total value of buffalo hides
calculated on the basis of the percentages of grades is Rs
3456.33 million with an economic loss of Rs 288.59 million.
BM. Please elaborate your comments over the Increase in power
charges that hit Pakistan's exports hard? Additionally tell me
how its impacts will be faced in future?
Ans: You Know that from the platform of Pakistan Tanners
Association (PTA) we opposed the increase in electricity charges
of 13.5 percent from January as per government's decision
appearing in the section of press. The cost of doing business
will increase further and Pakistani products will prove to be
uncompetitive. Furthermore I enunciate the government that
instead of taking such non-business friendly measures, it should
be providing due relief to the exporters particularly of leather
sector which was labour intensive and a great source of earning
foreign exchange, and who are still actively engaged in earning
much needed foreign exchange for the country. I also appeal to
the present democratic government to review its hard decision
and withdraw the increase in the rate of electricity in the
interest of the business community and the masses of the
country.
BM. France, Germany, Switzerland assure PTA of easing visa
matters in December to maintain liaison with international
business community. Please tell me something in this context.
Ans: Yes, Germany, France and Switzerland agreed to issue visa
to genuine and bonafide members of Pakistan Tanners Association
(PTA). We had a meeting with the consul generals of these
countries and discussed trade and business relations among the
countries. It's pertinent to note that if genuine and bonafide
members of PTA were facing any difficulty in obtaining visa they
could easily approach the German Consulate to look further ease.
BM. What message would you like to convey to the readers of
business monitor including, industrialists, educators and
professional of this country?
Asn: Let me convey the message. My comments are that there
should a representation for businessmen in the parliament along
with reinforcement to business sector. Secondly, education
should be ensured to business community, workers and the poor of
this country. Thirdly, there should be no comments regarding
depression in the country it always be talked positively. |