ISLAMABAD, Mar 5 (APP):A delegation representing Pakistan’s leather and footwear industry on Thursday called on Federal Minister for Commerce Jam Kamal Khan and discussed export potential of the sector, challenges faced by the domestic industry and regulatory concerns related to the import of used footwear.
During the meeting, the delegation highlighted the strong potential of Pakistan’s footwear industry to expand exports and contribute more significantly to the country’s export basket.
Industry representatives noted that Pakistan possesses substantial manufacturing capacity and skilled labor, which can support increased production for both domestic consumption and international markets, according to press release issued by commerce ministry.
The delegation emphasized that Pakistan’s annual footwear consumption is estimated at around 550 million pairs, while the country has an installed production capacity of nearly 700 million pairs annually, indicating significant potential for both domestic supply and export expansion.
However, they noted that a considerable portion of this capacity remains underutilized due to market distortions created by the growing influx of used footwear imports.
The industry representatives informed the Minister that approximately 30–40 percent of the domestic market is currently being met through imports of used footwear.
Many of these imports, they explained, include branded shoes entering the market at extremely low declared values under the category of used clothing, which creates unfair competition for local manufacturers.
In this context, the delegation proposed the introduction of a separate Harmonized System (HS) code for used footwear, which is currently classified under the broader category of used clothing and accessories.
They explained that the existing classification makes it difficult for regulators to properly track footwear imports, assess accurate valuation, and implement sector-specific regulatory 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 emphasizing 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.