LAHORE  - Severe power breakdowns have damaged around 20 per cent hides of sacrificial animals which may touch the level of 30 per cent, causing loss of about Rs2.5 billion to both tanneries as well as hide dealers, as the leather industry is presently facing electricity loadshedding of more than six hours.
This was stated by Pakistan Tanners Association Central Chairman Sheikh Saqib Saeed while talking to The Nation. Discussing the latest figures of hides’ collection, gathered from all over the country by the PTA, he said that apart from direct loss of around Rs2.5 billion due to animals skin damage, the country will have to suffer additional loss of over Rs4 billion foreign exchange, as the industry could not make value-addition to leather of about 60 per cent.
“With the double-digit interest rates, unprecedented inflation level and unavailability of gas and electricity, the government must intervene to ensure that the tanning units do not shut down, he said.  The PTA Central chairman observed that Pakistan is one of the biggest markets of the raw hides and skins in Asia and about 30 per cent of the total produce is generated only on the occasion of Eid.
Sheikh Saqib Saeed said that Eid-ul-Azha has great importance for rural economy, as tanning industry purchases about 30 per cent of its raw material during Eid.
Former PTA chairman Agaha Saiddain estimated that economic activity of around Rs130 billion were generated on Eid days, including Rs120 billion through animal sales and Rs7 billion through purchases of hides and Rs3 billion through allied industries. Agha said that tanneries are being supplied gas just for one day a week, besides power suspension of 6 hours, asking the government to exempt the tanning industry from gas and power load shedding at least in next three months. “This is necessary for processing hides before getting putrefaction which entirely damages the raw hides.
The skins, being a perishable item, cannot be stored without processing which requires uninterrupted supply of electricity and gas.”
Sheikh Saqib Saeed pointed out that hides are basic raw material for leather industry to make leather garments, bags, footwear, ballets and gloves. All these goods are exported that generates substantial amount of foreign exchange.
The PTA central chairman demanded the government to grant special status to the tanning industry and ensure supply of gas and electricity. He said that dealers will suffer billions of rupees loss, as the rate of hides is constantly decreasing due to climate conditions and power unavailability.
He stated that hides are generally damaged due to hiring of unprofessional butchers. Moreover, about 12 per cent of the hides are wasted because of lacking appropriate knowledge of their preservation.
Mr. Saqib said that industry desperately needs the uninterrupted supply of electricity and gas of coming 45-60 days to enable the leather manufacturers for smooth processing of these perishable hides & skins within the humidity climate of the country, otherwise manufacturers would be in great problems in processing of these items.
“This is necessary for processing hides before getting putrefaction which entirely damages the raw hides. The skins, being a perishable item, cannot be stored without processing which requires uninterrupted supply of electricity and gas.