Pakistan’s leather industry has warned that an indefinite nationwide goods transport strike could disrupt export shipments, threaten delivery commitments and add further pressure to a sector already facing declining exports and high production costs.
The warning came from Pakistan Tanners Association (PTA) Chairman Hamid A Zahur in a letter to Federal Commerce Minister Jam Kamal Khan, reported by Profit by Pakistan Today and Business Recorder. Zahur called for government intervention to maintain the movement of export and import cargo and prevent delays in getting leather consignments to ports.
The transporters’ strike began on August 8 after negotiations with the government failed. The All Pakistan Goods Transporters Alliance announced an indefinite stoppage, with transporters seeking changes including a review of the daily fuel-pricing mechanism, lower withholding tax and reduced toll charges. More than 400,000 goods-carrying vehicles were reported to have been taken off the roads.
Zahur said the disruption could prevent leather exporters from meeting agreed delivery schedules, potentially resulting in breaches of export commitments and letters of credit with overseas buyers. He added that the sector was already struggling to secure international orders amid high production costs and dwindling exports.
The leather sector joins other export industries raising concerns over the strike. Pakistan’s textile industry has also warned that shortages of export containers and transport for imported, and locally sourced cotton could disrupt production and exports if the stoppage continues.
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