Pakistan footwear industry urges curb on used footwear imports

ISLAMABAD: A delegation representing Pakistan’s leather and footwear industry met Federal Minister for Commerce Jam Kamal Khan on Thursday to discuss the sector’s export potential, challenges facing domestic manufacturers, and regulatory concerns related to the import of used footwear.

During the meeting, industry representatives highlighted the strong potential of Pakistan’s footwear industry to expand exports and contribute more significantly to the country’s trade. They noted that Pakistan has substantial manufacturing capacity and skilled labor capable of supporting both domestic and international markets, according to a press release issued by the Commerce Ministry.

The delegation pointed out that Pakistan’s annual footwear consumption is around 550 million pairs, while installed production capacity is nearly 700 million pairs, indicating significant potential for both local supply and export growth. However, they added, much of this capacity remains underutilised due to market distortions caused by the growing influx of used footwear imports.

Industry representatives said 30–40% of the domestic market is currently supplied by imported used shoes, many of which are branded and declared at extremely low values under the category of used clothing, creating unfair competition for local manufacturers.

To address this, the delegation proposed introducing a separate Harmonised System (HS) code for used footwear, which is currently classified under the broader category of used clothing and accessories. This would help regulators track imports accurately, assess proper valuation, and implement sector-specific measures.

During the discussion, the Joint Secretary (Tariff) of the Ministry of Commerce apprised the Minister that the proposal to create a separate HS code for used footwear has been placed on the agenda of the upcoming meeting of the Tariff Policy Board.

It was further shared that, following consultations and approvals, the proposal may ultimately become part of the upcoming federal budget.

Responding to the delegation’s concerns, Federal Minister Jam Kamal Khan acknowledged the importance of the leather and footwear sector as a high-potential export industry and reiterated the government’s commitment to supporting local manufacturing while promoting export-led growth.

The minister encouraged industry stakeholders to enhance export performance and strengthen Pakistan’s presence in international footwear markets, while also emphasising the need for locally produced footwear to remain reasonably priced and accessible in the domestic market.

The meeting also discussed broader measures to improve customs valuation practices, address regulatory challenges associated with used imports, and encourage investment in export-oriented footwear manufacturing.

Both sides agreed to maintain close coordination between the government and industry stakeholders to fully unlock the sector’s potential for employment generation, increased domestic production, and higher exports in the coming years.