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At the time of independence there were only a few tanneries producing sole leather and that too at a very small scale. In the early days of independence some tanneries were established in Karachi. In 1950’s some were established in Lahore and adjoining areas. The 1960’s saw the installation of more units in other parts of the country like Multan, Sahiwal, Kasur, Gujranwala and Sialkot. These units were well-equipped with the latest and modern facilities.

PAKISTAN is considered to be the hub of producing high quality Leather and Leather Products, and there are about 800 Tanneries in the country actively engaged in producing best quality finished leather of cow, buffalo, sheep & goat skins. Pakistan is rich in agricultural products and has a large livestock population which plays an important role in the economy of Pakistan by producing around 13.0 Million Hides and 47.4 Million Skins per annum (2009-10).

According to estimates by agricultural experts, the Pakistani Cattle herd reached 31.0 million in 1988. This steady advance also permitted arises in slaughter to 4.4 million in 1988. Recent proposals by the national commission on agriculture calls for an annual growth rate of agriculture from 4% to 5% up to the year 2000. The emphasis is set to shift from food grains to live stock produce, where growth is expected to increase from 2.9% to 6% per year. Both meat and milk production are expected to double as improvements are made in ground conditions and fodder. In the years up to the years 2000, this expansion is forecasted to continue as rapid population and income growths are translated into demand for meat.

  • The Leather Industry of Pakistan is employing more than 500,000 peoples directly and indirectly. (2009-2010) It contributes 5% of GDP and 5.4% to the overall export earnings of the country and is considered to be the most significant sector.

The first Investment Policy by Board of Investment (BOI) was given in 1997 which opened services, social, infrastructure and agriculture sectors for foreign and local investors. It was a major step forward for integration of Pakistan’s economy into international markets as prior to this policy; foreign investment was restricted to manufacturing sector only. The 1997 Policy laid a solid foundation for the gains in FDI inflows experienced over the subsequent decade.

Foreign Direct Investment in Pakistan increased by 2761.10 USD Million in 2016. Foreign Direct Investment in Pakistan averaged 2651.26 USD Million from 2010 until 2016, reaching an all time high of 3184.30 USD Million in 2010 and a record low of 2099.10 USD Million in 2012.

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