According to a survey conducted by LIDO (1994), there are about 595 tanneries in Pakistan, most of them located in clusters or industrial zones in Karachi, Lahore, Kasur, Multan, Faisalabad, Peshawar, Gujranwala and Sialkot. While traditional, small and medium-scale units still prevail, there are some large, well-mechanized, export oriented tanneries, especially in Karachi.

The raw material base for the expanding leather and leather based producing industry is drawn from a livestock population consisting of 17.4 million cattle, 14.7 million buffaloes, 29.2 million sheep, 35.4 million goats and 4.5 million horses, camels and donkeys, producing about 5.8 million of cattle hides and over 35 million of goat and sheep skins a year.

The rawhides and skins collection and conservation in Pakistan is partly handled through organized sector slaughterhouses and partly through collection by private collectors after slaughter in villages and after religious festivals. The hides and skins have good quality, but are partly downgraded through poor flaying and curing practices.

Despite this large livestock base, the country has turned from a net exporter (which it was only a few years ago) into a net importer of hides and skins. This change is a result of a combination of bans, restrictions and/or levies on exports of raw and semi-processed hides and skins and various incentives for exports of higher level of processing products with higher added value.

The leather and leather products sector now represents one of the most important industrial sectors, significantly contributing to the national economy: in 1989-1990 sector exports amounted to Rs. 6 billion for semi-processed and finished leather (over 52% of total sector exports), Rs. 3.4 billion for leather garments, Rs. 1.9 billion for different leather products (gloves, footballs, leather goods) and Rs. 0. I billion for leather footwear, for a grand total of Rs. 1 1.5 billion. In 1990-91 this figure had increased to Rs. 16.7 billion. With a share of II per cent in total export earnings, the leather and leather products is second only to cotton textiles in this respect. In 1993-94, the exports of the leather sector touched US$770 million. Major importers of Pakistan leather are:
Italy, Spain, Portugal, South Korea, Germany, France, UK, Holland, USA and Hungary.

It is estimated that this sector directly employs more than 200,000 workers and if the cottage sector is included ,it is believed that over one million people depend for their livelihood on this sector . The downstream processing, i.e. the leather products sub-sector is labor-intensive and has potential for female employment.

There is, however, a growing concern that the expansion of the leather sector has resulted in considerable environmental degradation and that local processing of both domestic and imported hides and skids has brought pollution which used to take place elsewhere. While the 8th Five Year Plan (1993-1998) for Pakistan envisages continued industrial development of the country by more investment in industries which would bring higher export value, enhance efficiency, productivity, quality of products and promote labor intensive industries, it is also provided that industrial growth needs to be ecologically sustainable in the long run and that the associated pollution which has been and still is the major problem of the tanning industry needs to be controlled by optimum use of chemicals, recycling, treatment and better utilization of liquid and solid wastes.

Environmental pollution in several tannery areas has reached such proportions that it represents a direct health hazard to the population, and in particular to water supplies for different purposes. Urgent remedial actions are required to reduce the negative impacts on the environment.

On the other hand, disruption in the activities of this industry and thereby in the production of leather and of leather products, would have a grave impact on export earnings, on employment and on the utilization of available natural resources.

The Pakistan state , while at the same time needing to promote industry in the country, is the only entity that can formulate the strict environment protection laws and ensure effective implementation of these laws at the local level. However, due to the leather industries prominent position in Pakistan's export industry, the national government has instead offered incentives__ such as rebates on the export of leather and leather products, duty-free import of the raw hides and skins for re-export after value addition, and export refund scheme on export of the leather footwear__ to bolster the leather industry with very little environmental guidance. These incentives are increasing the profit margin of these industries and encouraging more operations to set up shop without environmental control.

The polluting aspects of tanneries inevitably hit the poorest the hardest. Traditionally, in Pakistan, the poor people work in tanneries , which is strenuous and labor intensive. These jobs have been handed down in the family for generations. Moreover , in populous and developing country like Pakistan, people often compete for these jobs and are forced to put into dangerous working conditions. In addition, the pollutants are often released in areas that will affect the innocent human beings and animals and plants as well.