ISLAMABAD: Representatives from Pakistan’s leather and footwear industry convened with Federal Minister for Commerce Jam Kamal Khan on Thursday to deliberate on the sector’s promising export capabilities, the hurdles faced by domestic manufacturers, and pressing regulatory issues surrounding the import of used footwear. This high-level meeting underscored the industry’s vital role in Pakistan’s trade landscape and its untapped potential for growth.
During the discussions, industry leaders emphasized that Pakistan possesses a robust manufacturing infrastructure and a skilled workforce capable of catering to both local and international markets. They highlighted that the country’s footwear sector could significantly contribute to enhancing export revenues if given the right support and regulatory environment. The Commerce Ministry’s press release following the meeting noted that Pakistan’s annual footwear consumption stands at approximately 550 million pairs, while the installed production capacity is nearly 700 million pairs. This gap indicates a considerable opportunity not only to meet domestic demand but also to increase exports substantially.
However, the delegation expressed concern that a large portion of this manufacturing capacity remains underutilized. A major factor contributing to this underperformance is the influx of used footwear imports, which currently occupy 30 to 40 percent of the domestic market share. Many of these imported shoes are branded and are declared at minimal values under the broad customs category of used clothing. This practice distorts the market and creates an uneven playing field, putting local manufacturers at a disadvantage.
To tackle these challenges, the industry representatives proposed the introduction of a dedicated Harmonised System (HS) code specifically for used footwear. At present, used shoes are lumped together with used clothing and accessories, making it difficult for regulators to monitor imports accurately, assess their true value, and enforce appropriate tariffs. A separate HS code would enable better tracking and valuation, allowing the government to implement targeted measures to protect domestic producers.
The Ministry of Commerce’s Joint Secretary (Tariff) informed the minister that this proposal has been included in the agenda for the forthcoming Tariff Policy Board meeting. It was also conveyed that, following thorough consultations and necessary approvals, the new HS code for used footwear could be incorporated into the next federal budget. This development signals a positive step towards addressing longstanding concerns within the footwear industry.
Federal Minister Jam Kamal Khan responded positively to the delegation’s appeals, recognizing the leather and footwear sector as a high-potential area for export-led growth. He reaffirmed the government’s commitment to fostering an environment conducive to local manufacturing while simultaneously encouraging exporters to enhance their global competitiveness. The minister stressed the importance of ensuring that domestically produced footwear remains affordable and accessible to Pakistani consumers, thereby balancing export ambitions with local market needs.
In addition to the HS code issue, the meeting also covered broader topics such as improving customs valuation procedures, overcoming regulatory obstacles related to used imports, and promoting investment in export-oriented footwear production. Both the government and industry stakeholders agreed on the necessity of ongoing collaboration to unlock the sector’s full potential. This partnership aims to generate employment opportunities, boost domestic output, and increase export volumes in the years ahead, ultimately contributing to Pakistan’s economic growth and industrial diversification.
