One of the most pressing concerns raised by industry stakeholders is the growing influx of imported used footwear into the Pakistani market. According to industry estimates, nearly 30 to 40 percent of the domestic footwear market is currently supplied through such imports. While trade openness and consumer choice are important aspects of any modern economy, the issue here lies not in the presence of imports themselves, but in the regulatory loopholes and market distortions that allow used branded footwear to enter the country at extremely low declared values.
Pakistan’s leather and footwear sector stands at a critical crossroads. With an installed production capacity of nearly 700 million pairs annually and a domestic demand estimated at around 550 million pairs, the country possesses the industrial base, skilled workforce, and raw material resources necessary to transform the sector into a strong export contributor. Yet, despite this promising potential, a significant portion of the industry’s capacity remains underutilized. The recent meeting between representatives of Pakistan’s leather and footwear industry and Federal Minister for Commerce Jam Kamal Khan has brought renewed attention to the structural challenges that continue to limit the sector’s growth.
These imports often arrive under the broader classification of used clothing, making it difficult for regulators to track footwear-specific imports, determine accurate valuations, and implement targeted regulatory measures. The result is an uneven playing field where local manufacturers who must comply with taxes, labor costs, and regulatory requirements are forced to compete with undervalued imports. This not only undermines domestic industry but also discourages investment in local manufacturing.
The proposal put forward by the industry to introduce a separate Harmonized System (HS) code for used footwear is therefore a practical and necessary step. A distinct classification would allow customs authorities to monitor import volumes more effectively, improve valuation practices, and design appropriate regulatory frameworks for the sector. It would also bring transparency to a trade segment that has long operated within a regulatory grey area.
Encouragingly, the Ministry of Commerce has acknowledged the proposal and placed it on the agenda of the Tariff Policy Board, with the possibility that it may become part of the upcoming federal budget. This indicates that policymakers are increasingly aware of the need to balance trade facilitation with the protection of domestic industry from unfair competition.
However, regulatory reform alone will not be enough. The footwear sector must also seize the opportunity to enhance its export competitiveness. Pakistan already enjoys a reputation for producing high-quality leather, and global demand for affordable yet durable footwear continues to grow. By investing in modern production techniques, improving product design, strengthening branding, and exploring new international markets, Pakistani manufacturers can significantly expand their export footprint.
At the same time, policymakers must ensure that locally produced footwear remains affordable for consumers. A thriving domestic market provides the foundation for a strong export sector, and maintaining reasonable price points will help local brands compete not only internationally but also within Pakistan.
The broader lesson from this discussion is clear: Pakistan’s export potential cannot be unlocked without addressing structural inefficiencies within domestic markets. The footwear industry represents a valuable opportunity for employment generation, value-added manufacturing, and export growth. With coordinated policy action, transparent regulations, and proactive industry engagement, Pakistan can transform this sector into a significant driver of economic progress.
The time has come to step forward ensuring fair competition at home while confidently stepping into global markets.