Leather and Footwear Sector Investment Pitchbook （English Version）

Following are the key highlights of the Pitchbook compiled for investors from around the world especially China, who are interested in leather and footwear sector of Pakistan. 

1. **National Investment Environment** - Stable and reformed economy with B- credit rating, low inflation, and stabilized currency. - **SIFC** provides one-window approval and policy support for investors. - Favorable demographics: 255 million population, 64% under 30, large young labor force. - Strong legal protection, profit repatriation guarantee, and international arbitration compliance. - SEZs offer **10-year tax holidays** and fiscal incentives. 2. **Leather Sector Basics** - Annual exports reach **USD 850 million**, with potential to hit **USD 1.5 billion** via value addition. - Ranked **6th globally** in livestock population; 50+ million hides/skins available yearly. - 800+ tanneries, 500+ garment units, 150+ glove exporters; annual tanning capacity over 1 billion sq ft. - Exports to over 70 countries; main segments: garments (36%), gloves (32%), tanned leather (20%), footwear (12%). 3. **Core Competitive Advantages** - **Raw materials**: Abundant domestic supply of hides and skins. - **Cost**: Competitive labor costs below regional averages. - **Policy**: Strong government support for R&D, exports, and technology upgrading. - **Logistics**: Access to three major ports and CPEC connectivity, low shipping costs. - **Market**: Duty-free access to EU (GSP+), China, and other key markets. 4. **Key Industry Players** - Major local firms: Akram Tannery, Servis, Eastern Leather, Riaz Tanneries, Royal Leather Industries. - Active trade associations support industry development and exports. 5. **Investment Opportunities** - Expand high-value-added leather goods (footwear, garments, gloves). - Upgrade tannery technology and production processes. - Invest in green tanning and sustainable recycling solutions. - Develop dedicated leather logistics infrastructure under CPEC. - Establish skill-training centers for design, finishing, and quality control. 6. **Investment Incentives** - Tax holidays, reduced import duties on machinery and raw materials. - Export Facilitation Scheme: duty-free imports and zero-rated local inputs. - SEZ benefits: stable power, land incentives, and infrastructure support. - 100% foreign equity allowed; digitized customs via Pakistan Single Window. - Preferential market access to EU, China, UK, and GCC. 7. **Sector Potential** - Low global market share (<1%) with large room for growth. - High global demand for footwear and leather goods with underutilized local capacity. - Strong export upside via branding, value addition, and sustainability upgrades.