Pakistan’s Prime Minister Shaukat Aziz has approved the new 2006-7 Trade Policy which sets an export target of $18.6 billion and includes some incentives for the leather sector. This represents an increase of around 13% on the export level attained this year. Exports for the last fiscal year 2005-06 amounted to a $16.468 billion, an increase of $ 2.1 billion, or 14.4%, over last year's level of $14.391 billion.

Federal Minister for Commerce Humayun Akhtar Khan said, "During the period July 2005-May 2006, textile exports increased by $1.39 billion, rice by $178 million, leather products by $152.5 million, petroleum products by $ 42 million, chemicals by $23.1 million and other miscellaneous items by $88 million."

In addition, the total value of imports in the same period was $25.6 billion, 39.4% higher than the $18.4 billion for the corresponding period a year earlier.

Mr Khan believes the leather footwear sector has significant export potential but needs to make some improvements in its processes and products. Accordingly, it has been decided to provide this sector with 6% Research and Development support on the same lines as is presently available to the textile garments sector.