PR No. 126

Jam Kamal Khan Engages Leather Industry to Address Taxation, Market Access and Export Bottlenecks

Islamabad: May 14, 2026


Federal Minister for Commerce Holds Consultative Meeting with Leather Industry Representatives Federal Minister for Commerce, Jam Kamal Khan, held a detailed consultative meeting with representatives of Pakistan’s leather industry to discuss the sector’s export performance, competitiveness challenges, taxation pressures, market access issues, and reform proposals aimed at strengthening industrial growth and export potential.

During the meeting, industry representatives highlighted that despite Pakistan’s strong livestock base, established manufacturing expertise, and export capability in leather garments, gloves, footwear, handbags, and other value-added products, the sector continues to face multiple structural constraints.

These include high production costs, fragmented compliance requirements and high taxation rates.

The delegation raised concerns regarding the cumulative burden arising from multiple inspections, approvals, certifications, and multiple taxation by federal, provincial, and municipal authorities. Participants emphasized the need for a simplified and harmonized compliance framework and one window taxation channel to improve the ease of doing business and reduce operational inefficiencies.

The rising cost of doing business remained a major concern during the discussion. Stakeholders pointed to challenges in import financing and the high rate of duties on industrial raw materials, which they stated were adversely affecting export competitiveness and limiting the sector’s ability to expand in international markets. Industry representatives also shared preliminary budget proposals, including tariff rationalization, duty adjustments on raw materials, and tax relief measures for export-oriented manufacturing units.

Participants stressed that exporters must be facilitated across the broader industrial ecosystem, including affordable access to inputs, financing facilities, improved market access, and greater regulatory efficiency.

The leather industry further highlighted export growth opportunities linked to Pakistan’s livestock potential, expansion of the value chain, and stronger penetration into regional and international markets.

Federal Minister Jam Kamal Khan acknowledged the concerns raised by stakeholders and emphasized that enhancing Pakistan’s export competitiveness requires not only immediate facilitation measures but also long-term structural reforms in areas such as taxation, market access, financing, and industrial productivity.

The Minister reaffirmed the Ministry of Commerce’s commitment to maintaining close engagement with industry stakeholders to support practical reforms and strengthen Pakistan’s export-oriented manufacturing sectors.

The meeting concluded with a shared understanding on continued public-private collaboration to address sectoral bottlenecks and unlock the full export potential of Pakistan’s leather industry.

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