Pakistan's Federal Government is considering reducing import duty on tannery machinery, spare parts and chemicals.

It is also looking to declare Kasur and Sialkot as "Leather Cities" to encourage investment in leather accessories and enhance the sector's exports.

Pakistan's leather industry is one of the largest export earning sources. It produces and exports footwear, garments, gloves, jackets, hand bags, laptop bags, purses, key chains and wallets.

The Industry contributes around 5% of the country's GDP and 7% of the export earnings, and provides employment to around 0.25m people.

Currently the industry faces problems of higher import duty on chemicals though, together with high costs of production.

By Ahmed Abdullah.