Gulzar Firoz the chairman of Pakistan Tanners Association in an exclusive interview to Business Monitor

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.

 

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