The Impact of Decline in Leather Exports on Leather Industry

Abstract

In this research paper we are going to highlight the major factors that are responsible for the decline in leather exports of Pakistan. This research paper attempt to observe the contact of most important variables disturbing export of leather and leather products in Pakistan From past many years this sector is constantly suffering and could not able to improve its exports. We notice every aspect which is involved in the decline of leather exports and tried to reach the root cause of this problem of leather industry. For this research we use primary data source. The exports from Karachi are taken as the sampling frame. A representative sample of 35 leather exporters is selected from over all leather exporters in Karachi. To find out the impact of major variables cost of production, raw material, smuggling of livestock, advance technology on export of leather goods we use Correlation and Regression Analysis. And the relationship between these variables shows significant relationship. Conclusion on the bases of our research and Recommendations for the enhancement of leather exports is to improve the availability of raw material. Smuggling of livestock has to stop. Leather products needs promotion in all over the world. And also The present system of taxation needs to improve and the government should minimize the tax rate for the leather industry. It will be in the benefit for our country if the leather industry improves its exports and our research paper is for the betterment of leather industry.

Keywords: Leather exports, Tax rate, cost of production, smuggling of livestock