Pakistan Leather Industry Statistics
Pakistan’s leather industry exports about $1.0–$1.05 billion annually, largely from Kasur.
From Kasur’s bustling tannery cluster to global wardrobes, Pakistan’s leather industry has quietly grown into a US$1.02 billion export story in FY2021/22, hitting around US$1.0 billion in FY2022/23, powered by nearly 400 tanneries and thousands of footwear and garment makers, yet challenged by rising environmental compliance, chemical import costs, and pressure to move beyond raw hides into higher value finished leather.
Executive Summary
Key Takeaways
- 01
Pakistan’s leather sector exported about US$ 1.0 billion worth of leather and leather products in FY2022/23
- 02
Pakistan’s leather and leather products exports were reported at US$ 1.02 billion in FY2021/22
- 03
In FY2020/21, Pakistan’s leather and leather products exports were reported at US$ 1.05 billion
- 04
Pakistan’s tanneries are located predominantly in Kasur (over 60% of tanneries are in Punjab/Kasur cluster) as stated in industry profiles
- 05
Pakistan has about 400 tanneries producing leather
- 06
Pakistan’s footwear and leather sector has thousands of manufacturing units including small and medium enterprises
- 07
In Pakistan, cattle hide and skin supply is a primary input for the leather industry
- 08
Pakistan is among countries with significant livestock populations supporting hide/skin supply
- 09
Pakistan hides and skins are sourced from both slaughtered livestock and seasonal supply cycles
- 10
Pakistan’s leather sector employs a large labor force across tanneries, glove/garment manufacturing and footwear
- 11
The leather industry in Pakistan is a significant employment generator in Punjab and other industrial regions
- 12
Pakistan’s leather sector also includes subcontracting and informal labor segments
- 13
Pakistan’s leather exports are influenced by policy and tariffs for inputs and chemicals
- 14
EU market access requirements for leather/footwear affect Pakistan’s export compliance
- 15
Pakistan’s leather exports have historically been constrained by limited value addition compared to raw hides/skins
Section 01
Employment & Workforce
Pakistan’s leather sector employs a large labor force across tanneries, glove/garment manufacturing and footwear [1]
The leather industry in Pakistan is a significant employment generator in Punjab and other industrial regions [2]
Pakistan’s leather sector also includes subcontracting and informal labor segments [3]
Pakistan’s leather industry includes subcontracting for glove/garment production to small workshops [4]
Pakistan’s leather manufacturing provides livelihoods for skilled and semi-skilled workers [5]
Pakistan’s leather sector workforce includes women in some processing/finishing roles [6]
Pakistan’s leather industry creates jobs in cutting, sewing, finishing and quality inspection [7]
Pakistan’s leather industry contributes to informal employment segments [8]
Section 02
Environment & Sustainability
Pakistan’s leather industry is affected by restrictions/requirements for hazardous wastewater management from tanneries [9]
Pakistan has wastewater treatment needs for tannery effluents [10]
Use of chrome tanning is common in Pakistan, creating chromium-containing effluent [11]
The leather industry’s environmental footprint includes solid waste from fleshing/splitting operations [12]
Pakistan’s leather sector faces challenges in meeting international environmental standards [13]
Pakistan’s tannery wastewater disposal practices create high BOD/COD loads [14]
Typical tannery effluent parameters include high chromium and sulfide levels [15]
Leather industry energy use contributes to greenhouse gas emissions [16]
Pakistan’s leather industry has faced infrastructure limitations such as limited capacity for effluent treatment in some clusters [17]
Pakistan’s tannery effluent contains dissolved solids and organic matter requiring treatment before discharge [18]
Pakistan’s leather industry is impacted by limited adoption of cleaner technologies among smaller tanneries [19]
Cleaner production interventions can reduce pollution loads and improve leather quality [20]
Pakistan’s tannery workers are exposed to hazardous chemicals without adequate PPE [21]
Leather worker health concerns include respiratory and skin issues from tanning chemicals [22]
Pakistan’s leather industry includes drum/dyeing operations requiring water and dye chemicals [23]
Cleaner production in leather reduces water consumption [24]
Pakistan’s leather sector includes initiatives for common effluent treatment plants (CETPs) in tannery clusters [25]
Pakistan has implemented CETP concepts in the Kasur tannery cluster [26]
Pakistan’s industrial water availability constraints affect tanning operations [27]
Pakistan’s tanning process requires substantial water for washing and dyeing [28]
Pakistan’s leather industry uses dyes and finishing chemicals that require treatment prior to discharge [29]
Pakistan’s leather industry uses mechanical processes (splitting, shaving) that generate solid waste [30]
Pakistan’s leather workers face occupational hazards without adequate safety training [31]
Pakistan’s environmental regulations under the Pakistan Environmental Protection Act require compliance for industrial effluent [32]
Pakistan environmental regulations set effluent discharge standards that tannery operators must meet [33]
Pakistan’s cleaner production in leather addresses reduction in pollution loads such as BOD and COD [34]
Pakistan’s leather industry water use can be reduced through process optimization and cleaner technologies [35]
Pakistan’s solid waste from leather processing can be reduced or valorized through improved practices [36]
Pakistan’s government/industry reports highlight need for upgraded wastewater treatment and cleaner production technologies [37]
Cleaner production programs target reducing water, chemical and energy consumption per unit of leather [38]
Section 03
Exports & Trade
Pakistan’s leather sector exported about US$ 1.0 billion worth of leather and leather products in FY2022/23 [39]
Pakistan’s leather and leather products exports were reported at US$ 1.02 billion in FY2021/22 [40]
In FY2020/21, Pakistan’s leather and leather products exports were reported at US$ 1.05 billion [41]
Pakistan exports finished leather and leather garments along with raw/processed hides and skins [42]
Pakistan has an export concentration in leather footwear and leather garments in addition to leather [43]
Pakistan’s leather exports include both direct and indirect exports via intermediaries and trading houses [44]
Pakistan’s leather and leather products are classified across multiple HS codes including 41 (leather) and 64 (footwear) [45]
Pakistan exports raw hides and skins under HS 4101/4102 categories [46]
Pakistan exports leather footwear under HS 6403 [47]
Pakistan exports gloves/skins under HS 4203 (gloves) [48]
Pakistan exports leather garments under HS 4203/420310 etc. [49]
Pakistan’s primary buyer markets include EU countries, UK, and others [50]
Pakistan’s domestic consumption of leather/footwear is lower than exports in some years due to income and retail structure [51]
Pakistan’s leather and footwear market is supported by local retailers and export-oriented manufacturers [52]
Pakistan’s leather manufacturing exports contribute to foreign exchange earnings reported in Pakistan’s economic surveys [53]
Pakistan’s leather industry exports include value-added items like finished leather and leather garments [54]
Pakistan’s leather exports experienced disruptions due to global demand fluctuations (COVID-era) [55]
Pakistan’s leather industry exports are tracked by ITC Trade Map and HS codes [56]
Pakistan’s leather and leather products include exports under HS 4104 (tanned leather) and other categories [57]
Pakistan’s leather and leather products include exports under HS 4202/4203 (travel/garments, gloves) [58]
Pakistan’s leather industry exports include both direct and indirect exports of leather components [59]
Pakistan’s leather exports include both crust and finished leather categories [60]
Pakistan’s footwear exports include leather uppers and complete shoes [61]
Pakistan’s leather gloves exports are included under HS 4203 [62]
Pakistan’s leather garments exports are under HS 4203 [63]
Pakistan’s crust leather exports are significant within the leather export basket [64]
Pakistan’s finished leather exports include footwear uppers and ready leather products [65]
Pakistan’s leather footwear export destination includes EU markets [66]
Pakistan’s leather and leather products exports are included in Pakistan’s official trade data categories [67]
Pakistan’s exports by group include leather and leather manufactures line items [68]
Pakistan’s export statistics are published by PBS for specific commodities including leather products [69]
Pakistan exports leather components for industrial/allied sectors [70]
Pakistan’s leather footwear production is influenced by demand from foreign brands and retailers [71]
Pakistan’s consumer footwear and leather demand growth is linked to urbanization and rising incomes [72]
Pakistan’s domestic market for shoes includes both leather and synthetic footwear, affecting leather producer volumes [73]
Section 04
Inputs & Resources
In Pakistan, cattle hide and skin supply is a primary input for the leather industry [74]
Pakistan is among countries with significant livestock populations supporting hide/skin supply [75]
Pakistan hides and skins are sourced from both slaughtered livestock and seasonal supply cycles [76]
Pakistan’s import of chemicals used in tanning affects production costs [77]
Pakistan’s leather sector is affected by volatility in rawhide supply and pricing around Eid/ritual slaughter periods [78]
Average hide curing and handling affects tanning input quality [79]
Pakistan’s hide curing methods include salting and other preservation before tanning [80]
Chrome tanning uses basic chromium sulfate in many tanneries [81]
The leather and footwear sector relies on chemical imports for tanning and finishing [82]
Pakistan’s tanning requires salt and other curing chemicals [83]
Pakistan’s livestock slaughter rates drive hide supply [84]
Pakistan’s annual hides/skins availability supports leather tanning capacity [85]
Pakistan’s domestic hide/skin production is a key factor for export competitiveness [86]
Pakistan’s tanneries often use vegetable/alternative tanning methods alongside chrome tanning [87]
Pakistan’s leather sector is connected to livestock/agriculture value chains [88]
Section 05
Policy & Regulation
Pakistan’s leather exports are influenced by policy and tariffs for inputs and chemicals [89]
EU market access requirements for leather/footwear affect Pakistan’s export compliance [90]
Pakistan’s leather exports have historically been constrained by limited value addition compared to raw hides/skins [91]
Pakistan’s leather industry faces limited access to finance for SMEs [92]
Pakistan has programs supporting exports through trade fairs and export development initiatives benefiting leather firms [93]
Pakistan’s leather industry has been subject to export-oriented incentives/registrations through TDAP [94]
Pakistan’s Economic Survey provides leather export performance and policy measures [95]
Pakistan has a relatively high domestic share of raw hides and skins in leather value chain compared to finished leather [96]
Pakistan’s textile/leather sector is part of wider industrial strategy for export diversification [97]
Pakistan’s leather industry is included in National Export Strategy/sectoral focus areas [98]
Pakistan’s leather industry faces competition from countries with lower environmental compliance costs [99]
Pakistan’s ability to meet EU RoHS/REACH chemical restrictions affects leather chemical management [100]
Pakistan’s footwear and leather exports face logistics constraints like shipping costs and documentation delays [101]
Pakistan’s leather industry is constrained by compliance with international grading/standards for leather quality [102]
Pakistan’s leather sector is affected by currency exchange rate movements impacting import costs (chemicals) [103]
Pakistan’s leather export competitiveness depends on achieving consistent quality and supply reliability [104]
Pakistan’s leather supply chain includes hide collectors and middlemen affecting prices [105]
Pakistan’s leather industry has value capture issues where raw hides are exported at relatively higher shares [106]
Pakistan’s leather sector exports are subject to standards certifications (e.g., quality/chemical compliance) [107]
Pakistan’s tanneries may use ISO 9001 or other quality management systems for export markets [108]
Pakistan’s industrial clusters have export support via chambers and trade associations for leather [109]
Pakistan’s leather sector is supported by associations such as Pakistan Tanners Association/PSQCA links [110]
Pakistan’s leather sector faces import restrictions or regulatory requirements for certain chemicals/materials used in tanning [111]
Pakistan’s customs duties on tanning inputs affect the final cost of leather [112]
Pakistan’s Sales Tax/Regulatory Duty structure can change the cost structure of leather exports [113]
Pakistan’s energy prices (electricity/gas) impact tannery operating costs [114]
Pakistan’s industrial tariffs have changed over time which impacts manufacturing sectors including leather [115]
Pakistan’s leather exports are affected by trade agreements and market access conditions [116]
Pakistan’s preferential market access depends on rules of origin and certification for leather products [117]
Pakistan’s GSP+ status (when applicable) supports export access for certain product groups including leather-related HS codes [118]
Pakistan’s leather sector is influenced by sanitary and phytosanitary controls for raw animal inputs [119]
Pakistan’s leather manufacturing quality inspection uses grading/measurement for export acceptance [120]
Pakistan’s export documentation and standards compliance requirements include invoices, certificates of origin and packing lists [121]
Pakistan’s leather sector may use EORI/UK/EU import requirements depending on destination [122]
Pakistan’s leather exports are affected by customs clearance times and border procedures [123]
Pakistan’s overall trade logistics performance influences export competitiveness for leather shipments [124]
Pakistan’s logistic performance score (LPI) is a single numeric indicator used for cross-country trade logistics comparisons [125]
Pakistan’s leather sector benefits from trade facilitation improvements reducing lead times for exporters [126]
Pakistan’s “time to export/import” indicators from the World Bank/Doing Business or related datasets affect exporters [127]
Pakistan trade costs affect shipping and export margins for leather exporters [128]
Pakistan’s leather industry is impacted by competition from cheaper imported footwear/leather goods [129]
Section 06
Production & Manufacturing
Pakistan’s tanneries are located predominantly in Kasur (over 60% of tanneries are in Punjab/Kasur cluster) as stated in industry profiles [130]
Pakistan has about 400 tanneries producing leather [131]
Pakistan’s footwear and leather sector has thousands of manufacturing units including small and medium enterprises [132]
Pakistan’s share of world leather production is small but the country is recognized as a major exporter of raw hides and skins [133]
Pakistan’s leather sector is concentrated in clusters around industrial cities (e.g., Kasur, Lahore) [134]
Tanneries in Pakistan are mostly medium-to-small scale enterprises [135]
Pakistan’s Industrial Zones / clusters include leather tanneries in Punjab’s industrial estates [136]
Pakistan has a Leather City / industrial cluster proposal in Kasur or related areas referenced by government/industry sources [137]
Pakistan leather processing includes beam-house operations and chrome tanning stages [138]
Retanning and finishing phases add value to leather goods [139]
Pakistan’s leather sector contributes to GDP through manufacturing and exports [140]
Pakistan’s overall manufacturing value added increased in recent years, impacting leather [141]
Pakistan’s Economic Survey reports number of tanneries, production capacity, or export volumes for leather in the industry section [142]
Pakistan’s Ministry/industry reports mention constraints like limited leather finishing capacity [143]
Pakistan’s leather industry in Sialkot/others supports footwear exports [144]
Pakistan’s glove industry includes leather gloves production [145]
Pakistan produces leather garments such as jackets [146]
Pakistan’s leather footwear exports include sandals and shoes [147]
Pakistan’s tanneries may have limited automation resulting in productivity gaps [148]
Pakistan’s tanned leather production is dependent on the number and capacity of tanneries [149]
Pakistan has a large cluster of leather exporters in Lahore/Kasur; export houses aggregate products [150]
Pakistan’s tanneries produce both upper leather and garment leather for exports [151]
Pakistan Tanners Association membership/capacity figures are used in industry reporting [152]
Pakistan’s leather industry is part of Pakistan’s “Manufacturing” sector and can be analyzed via LSM/industry indices where available [153]
Pakistan’s LSM manufacturing indices for leather products show activity trends over time [154]
Pakistan’s export growth in leather/footwear is linked to productivity improvements in tanneries and finishing units [155]
Pakistan’s leather value chain includes tanning, finishing, and manufacturing stages [156]
Pakistan’s production process includes finishing chemicals and buffing operations [157]
Pakistan’s leather sector includes dyeing and finishing for different leather types used in footwear and garments [158]
Pakistan’s tanneries produce various thickness/grades of leather for different end uses [159]
Pakistan’s leather sector includes production of lining leather for bags/shoes [160]
Pakistan’s value chain upgrades require investment in modern machinery for cutting, tanning and finishing [161]
References
Footnotes
- 1itc.gov.pk×8
- 4trade.gov×46
- 9pakistan.gov.pk×30
- 14sciencedirect.com×2
- 16fao.org×15
- 21ncbi.nlm.nih.gov×3
- 32epd.punjab.gov.pk×2
- 40pbs.gov.pk×9
- 45unstats.un.org
- 46trademap.org×13
- 53finance.gov.pk×3
- 55unctad.org
- 89wto.org×2
- 91worldbank.org×4
- 93trade.gov.pk
- 94tdap.gov.pk
- 97planipolis.iiep.unesco.org
- 98commerce.gov.pk×2
- 100eur-lex.europa.eu
- 109pakistanchamber.com
- 110pta.org.pk×2
- 112download1.fbr.gov.pk×2
- 114nepra.org.pk×2
- 117ec.europa.eu
- 118policy.trade.ec.europa.eu
- 123databank.worldbank.org
- 124lpi.worldbank.org×3
- 128data.worldbank.org
- 136punjab.gov.pk×2