Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 43 SECTION-1 2024 In FY 2024, Pakistan’s pharmaceutical exports reached US$341 million, marking a modest 3.9 percent growth compared to the previous year, with export quantities rising sharply by 46.7 percent to 86,895 metric tons. Afghanistan remained the top importer, contributing US$130 million, a 2.4 percent increase, with quantities growing by 36.4 percent. Sri Lanka and Uzbekistan also showed strong performance, with export values increasing by 13.8 percent and 42.4 percent, respectively, and volumes surging by 122.8 percent and 77.6 percent. Iraq experienced significant growth, with export value soaring by 195.2 percent and quantity rising 220.8 percent. Other notable markets included Thailand, with a remarkable 243.8 percent rise in export value and a 251.4 percent increase in quantity, and the UAE, which saw a 48.5 percent growth in value and a 134.2 percent surge in volume. However, some markets, such as Singapore and the Philippines, experienced declines, with export values dropping by 56.3 percent and 6.9 percent, respectively. Despite challenges in certain regions, Pakistan’s pharmaceutical sector displayed resilience and expanded its footprint in emerging and established markets. 1.1.4. Leather & leather products Exports The leather industry in Pakistan holds a vital place in the country’s export economy. As one of the top contributors to non-textile exports, Pakistan’s leather and leather products are highly sought after in international markets. In FY 2024, the sector demonstrated steady performance, benefiting from strong demand in Europe and other regions, supported by improved manufacturing processes, better quality control, and favourable government policies. During FY 2024, Pakistan’s leather exports reached US$808 million, reflecting a moderate negative growth rate of 8.9 percent compared to the previous fiscal year. The industry exports various leather products including raw leather, leather garments, footwear, and accessories like gloves and belts. Breakdown of Leather Exports by Category 1. Raw and Finished Leather Raw leather and finished leather products continue to be the backbone of Pakistan’s leather exports. This category accounted for US$138 million, or 17.0 percent of total leather exports in FY 2024. The demand for finished leather, used in furniture, automobiles, and luxury goods, remained strong in European markets. 2. Leather Garments Leather garments, including jackets and trousers, were one of Pakistan’s top exports in the sector. With a value of US$249 million, leather garments made up 30.8 percent of total exports. European and North American markets showed consistent demand for high- quality, competitively priced leather apparel. Table 30: Pakistan’s Leather Exports (FY 2024 vs FY 2023) Commodities VALUE (MILLION US$) FY 2024 FY 2023 % CHANGE % SHARE LEATHER & LEATHER PRODUCT 808 887 -8.9 LEATHER TANNED 138 68 -17.9 17.0 LEATHER GARMENTS 249 81 -11.3 30.8 LEATHER GLOVES 283 81 0.7 35.0 OTHER LEATHER MANU FACTURES 14 5 -11.5 1.7 LEATHER FOOTWEAR 125 142 -12.1 15.5 3. Leather Footwear: Leather footwear contributed significantly to Pakistan’s export performance, with total exports of US$125 million, representing 15.5 percent of the overall leather export portfolio. The increase in demand for leather shoes and sandals, particularly in European countries, helped drive this category’s growth. 4. Leather Gloves: Leather gloves accounted for US$283 million in exports, making up 35.0 percent of the total leather exports in FY 2024. These products are popular in both North America and Europe due to their high craftsmanship and affordability. 5. Other Leather Accessories: In addition to gloves, Pakistan excels in manufacturing leather fashion accessories like belts and bags, which are appreciated for their stylish designs and fine finishing. These products cater to both utility and fashion, earning Pakistan a strong reputation in the international leather goods industry. The combination of skilled labour and premium raw materials further enhances the appeal of these exports. Challenges Faced by the Leather Industry • The leather industry displayed vulnerability due to several persistent challenges during FY 2024: 1. Rising Input Costs: The cost of raw materials, particularly hides and chemicals used in tanning, increased significantly,
44
Annual Analytical Report on External Trade Statistics of Pakistan
2 0 2 4
F Y
impacting profit margins for exporters. Energy costs
and supply chain disruptions also contributed to higher
production costs.
2. Global Competition:
Pakistan faced stiff competition from other leather-
exporting nations like India, Bangladesh, and Vietnam.
These countries offer similar products at competitive
prices, making it challenging for Pakistani exporters to
maintain their market share.
3. Stringent Environmental Regulations:
Environmental
compliance
in
some
export
destinations, especially in the EU, has become stricter.
Pakistani leather exporters had to invest more in
environmentally friendly production processes to meet
these regulatory requirements, which required additional
resources and expertise.
1.1.1.17. Leather Tanned Export
Pakistan’s leather industry is an important part of the
country’s export portfolio, contributing significantly to
foreign exchange earnings. The tanning sector, which
involves processing raw hides and skins into finished
leather, plays a crucial role in this industry. In FY 2024,
Pakistan’s export of tanned leather continued to face
both opportunities and challenges, influenced by global
market trends, shifting demand, and internal industry
dynamics. In FY 2024, Pakistan exported tanned leather
to a wide range of international markets. Although the
industry experienced fluctuations due to global economic
uncertainty, it maintained a steady output.
Table 31: Pakistan’s Tanned Leather Exports by Volume and Value
MEAT TYPE
VOLUME
(MT)
EXPORT VALUE
(MILLION US$)
%SHARE
FY 2024
9,864
138
FY 2023
10,082
168
78.7
Key Export Markets
Pakistan’s tanned leather exports declined to US$138
million in FY 2024, a 17.9 percent drop from the
previous year, while export quantities decreased slightly
by 2.2 percent to 9,864 metric tons. Vietnam remained
the top importer, with exports valued at US$29 million,
nearly unchanged from FY 2023, despite a 14.2 percent
decrease in quantity. Italy, the second-largest market,
saw an 18.9 percent decline in export value and a
marginal 1.6 percent reduction in quantity. Similarly,
China experienced a 17.1 percent decrease in value, but
quantities increased by 36 percent, reflecting growing
demand for lower-cost leather materials.
Table 32: Top Tanned Leather Export Market During FY2024
COUNTRY
EXPORT VALUE
(MILLION US$)
EXPORT QUANTITY
(MT)
FY
2024
FY
2023
%
Change
FY
2024
FY
2023
%
Change
LEATHER
TANNED
138
168
-17.9
9,864
10,082
-2.2
Viet Nam
29
29
-0.4
1,361
1,587
-14.2
Italy
25
30
-18.9
2,184
2,219
-1.6
China
18
22
-17.1
2,248
1,653
36
Spain
8
12
-28
478
695
-31.2
Indonesia
8
10
-21.8
498
543
-8.3
Bangladesh
8
11
-31.3
353
527
-33.1
Hong Kong
5
6
-16.7
265
262
1.3
Cambodia
4
4
2.8
207
245
-15.4
Turkey
4
5
-25.4
355
315
12.8
U.S. Amer
ica
4
3
17.5
270
206
31.3
Germany
4
4
-9.4
139
163
-14.9
South Africa
3
3
-4.5
312
167
86.9
South Korea
3
4
-34.1
96
174
-45
Portugal
2
4
-32.3
258
196
31.7
Netherlands
1
2
-1.3
92
67
37.7
France
1
2
-21.1
60
69
-12.3
Austria
1
2
-16.2
79
67
17.7
Japan
1
2
-24.7
69
67
2.8
Singapore
1
0
115
51
19
169.5
Other key markets such as Spain, Indonesia, and
Bangladesh witnessed significant drops in both value
and quantity, with declines ranging from 21.8 percent
to 31.3 percent. Conversely, some markets showed
resilience or growth. Exports to the U.S. increased by
17.5 percent in value and 31.3 percent in quantity,
while South Africa and Portugal experienced quantity
growth of 86.9 percent and 31.7 percent, respectively.
Singapore emerged as a promising market with a 115
percent surge in export value and a 169.5 percent rise
in quantity, indicating potential for diversification in
Pakistan’s leather export destinations.
1.1.1.18. Leather Garments Export
The leather garments sector is a vital part of
Pakistan’s export industry, renowned for its high-quality
craftsmanship and value-added products. Leather
jackets and other leather apparel have been in high
demand internationally, especially in Europe, North
America, and parts of Asia. During FY 2024, Pakistan’s
export of leather garments witnessed both growth and
challenges, driven by evolving market conditions and
global trends.
Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 45 SECTION-1 2024 Key Export Markets Table 33: Top 20 Leather Garments Export Market During FY2024 COUNTRY EXPORT VALUE (MILLION US$) EXPORT QUANTITY (THOUSAND DOZ) FY 2024 FY 2023 % Change FY 2024 FY 2023 % Change LEATHER GARMENTS 249 281 -11.3 1,885 1,483 27.1 Germany 56 63 -11.9 190 226 -16.2 U.S. Amer ica 41 54 -23.2 417 431 -3.3 Russian Federation 24 13 88.4 49 53 -7 Netherlands 17 20 -16.4 48 94 -49.2 Spain 16 13 22.8 60 55 9.5 United Kingdom 15 17 -9.9 94 86 10.1 France 13 19 -33.3 37 77 -51.9 Poland 11 9 14.3 31 36 -13.8 Italy 9 9 -0.5 39 35 11.8 Canada 6 8 -22.1 34 51 -32.9 Belgium 5 5 3.6 40 20 97.9 Australia 5 4 4.1 48 39 23.6 Japan 4 4 -17.2 31 18 70.5 Greece 3 3 7.9 16 11 42.1 United Arab Emirates 3 2 93.4 235 19 1,141.80 South Africa 2 2 2.4 158 11 1,334.50 Sweden 2 3 -32.3 13 21 -38.1 South Korea 2 0 222.6 10 11 -13.3 Denmark 1 2 -29.9 6 12 -49.3 Czech Republic 1 2 -17 18 11 63.8 In FY 2024, Pakistan’s leather garments exports totalled US$249 million, marking an 11.3 percent decline compared to FY 2023. Despite this, export quantity rose significantly by 27.1 percent to 1,885 thousand dozen. Germany remained the top market, with US$56 million in exports, though it declined by 11.9 percent, and quantity dropped 16.2 percent. The U.S. showed a sharp 23.2 percent decline in value, despite a modest 3.3 percent dip in quantity. The Russian Federation saw the highest growth in value at 88.4 percent, while South Africa and the UAE exhibited exceptional quantity increases of 1,334.5 percent and 1,141.8 percent, respectively. In contrast, markets like France and Denmark faced steep declines in both value and quantity. 1.1.1.19. Leather Gloves Export In FY 2024, Pakistan’s leather gloves exports experienced marginal growth in value, reaching US$283 million, a 0.7 percent increase compared to US$281 million in FY 2023. This reflects a steady demand for the product in international markets despite challenging global economic conditions. The slight rise in export value indicates Pakistan’s resilience in maintaining its position as a key player in the leather gloves industry. Export quantity also showed a modest increase of 0.3 percent, climbing from 9,570 thousand dozen in FY 2023 to 9,603 thousand dozen in FY 2024. This consistency in export volume suggests stable production and supply chain capabilities. The minimal changes in both value and quantity highlight the importance of sustaining quality and exploring new markets to achieve more significant growth in the future. Key Export Markets The U.S. remained the largest market, contributing US$88 million, but export quantity to the U.S. dropped significantly by 20.8 percent, reflecting shifting demand patterns. Canada saw a 9.7 percent decline in value and a sharp 45.3 percent reduction in quantity, while Germany recorded a 1 percent dip in value but a notable 19.5 percent increase in quantity, indicating competitive pricing or higher demand. Emerging markets demonstrated robust growth. Poland’s export value rose by 18.6 percent, with an impressive 121.1 percent surge in quantity, and South Africa showed a 21.3 percent value increase and a 110.9 percent rise in quantity. Saudi Arabia and the UAE also posted strong growth, with value rising by 20.5 percent and 11.3 percent, respectively, supported by significant increases in quantity. On the other hand, traditional markets like Spain, France, and Australia experienced declines in both value and quantity, underscoring the need for diversified market strategies. 1. Leather Footwear: Leather footwear contributed significantly to Pakistan’s export performance, with total exports of US$125 million, representing 15.5 percent of the overall leather export portfolio. The increase in demand for leather shoes and sandals, particularly in European countries, helped drive this category’s growth. 2. Leather Gloves: Leather gloves accounted for US$283 million in exports, making up 35.0 percent of the total leather exports in FY 2024. These products are popular in both North America and Europe due to their high craftsmanship and affordability. 3. Other Leather Accessories: In addition to gloves, Pakistan excels in manufacturing leather fashion accessories like belts and bags, which are