Pakistan Leather Industry Seeks Tax Cuts and Regulatory Reforms to Boost Exports

Representatives of Pakistan's leather sector have formally urged the government to implement significant fiscal and regulatory reforms in the upcoming FY2026–27 budget. During a high-level meeting with Commerce Minister Jam Kamal Khan in Islamabad, industry stakeholders highlighted that despite Pakistan's strong livestock base and manufacturing capacity, the sector faces structural challenges hindering global competitiveness. Key demands include reducing multiple layers of taxation, simplifying complex compliance procedures, and introducing duty relief on imported raw materials. The delegation argued that overlapping requirements from federal, provincial, and municipal authorities increase operational costs and cause production delays. To address these issues, they proposed a harmonized compliance system and a one-window taxation mechanism to streamline processes and improve the ease of doing business. Additionally, the industry pointed to rising input costs and financing difficulties as major barriers to growth. By adopting tariff rationalization and targeted tax relief, the sector aims to unlock its export potential in garments, footwear, and leather goods, thereby strengthening Pakistan’s industrial base and expanding its presence in international markets.