Jam Kamal Khan Pledges Support for Leather and Footwear Industry in Groundbreaking Meeting

Islamabad, August 28, 2024:

Federal Minister for Commerce, Jam Kamal Khan, held a meeting with the Pakistan Leather and Footwear Council, marking what he described as the first time a federal minister has actively engaged with this sector’s council.

The minister emphasized that the primary goal of the meeting was to restructure, strengthen, and revitalize the council, ensuring it becomes a more active and effective body.

During the meeting, Minister Khan underscored the critical role that sectoral councils can play in policy formulation. By maintaining close contact with industry leaders, listening to their concerns, and working collaboratively on a forward-looking strategy, these councils can greatly influence the future direction of the industry.

“The government is fully committed to instilling confidence in our local industry and providing robust support,” Khan assured the council members. He highlighted the need to capitalize on “low-hanging fruits”—immediate opportunities that can be seized with minimal effort—and reiterated that Prime Minister Shehbaz Sharif is dedicated to supporting the industry and exporters by offering all possible incentives.

Khan further assured the council that both he and the Ministry of Commerce, supported by an energetic and vibrant team, are fully available to the council and are eager to receive its recommendations and proposals.

Chaudhry Zulfiqar Hayat, Chairman of the Pakistan Leather and Footwear Council, appreciated Minister Khan’s vision and intervention, stating that the business community and the industry are encouraged by the minister’s commitment to empowering these councils. “For the first time, we feel that a minister is genuinely thinking about empowering these councils,” Hayat remarked.

Minister Khan also conveyed to the Prime Minister that these councils are the only platforms providing a true representation of their sectors, offering invaluable insights into the actual state of the industry.

He emphasized the need for the councils to establish a secretariat that would be fully supported by the Ministry of Commerce, with a built-in mechanism to drive future initiatives.

Council members emphasized the importance of strengthening the leather industry, which they termed the “mother industry” of the footwear sector. They stressed the need to adopt international standards and obligations.

The minister urged the council, along with 15 other sectoral councils, to submit their proposals and recommendations. These will be presented to the National Export Development Fund, chaired by the Prime Minister, for consideration and approval.

The council members also raised concerns about tariffs on imported raw materials and liquidity issues, urging the government to support this billion-dollar industry.

In response, Minister Khan announced that the government is taking initiatives to facilitate small businesses, including establishing warehouses in different countries, starting with Saudi Arabia. This initiative is currently in progress.

The minister expressed support for the establishment of Business Centres and entertained a proposal from the council members to transform the advisory role of the councils into autonomous bodies, which would increase their functionality and effectiveness.

Additionally, they proposed making tariffs more competitive with international rates to bolster the growth of the industry.

Council members highlighted the industry’s reliance on imports, including chemicals and raw materials, and called for support in developing the livestock industry, as well as enhancing technical education and research.

In closing, Minister Khan reiterated his commitment to supporting the leather and footwear industry at all levels.

Jam Kamal vowed that this time, the government’s support would be tangible and impactful, marking a departure from past practices where commitments often went unfulfilled.