The government is considering introducing a separate Harmonised System (HS) code for the import of used footwear, a proposal that may be included in the upcoming federal budget amid industry concerns about market distortions affecting local manufacturers.
The issue was discussed during a meeting between a delegation representing Pakistan’s leather and footwear sector and Federal Minister for Commerce Jam Kamal Khan, according to a statement released on Thursday.
During the meeting, industry representatives underlined the strong potential of Pakistan’s footwear sector to expand exports and increase its contribution to the country’s export basket.
They pointed out that Pakistan has significant manufacturing capacity and a skilled workforce capable of boosting production for both local consumption and international markets.
According to the delegation, annual footwear demand in Pakistan is estimated at around 550 million pairs, while the country’s installed production capacity stands at nearly 700 million pairs per year. This suggests considerable room for both domestic supply and export growth. However, a notable portion of this capacity remains underutilised due to distortions caused by the rising inflow of used footwear imports.
Industry representatives told the minister that roughly 30–40% of the domestic market is currently supplied through imported used footwear. They explained that many of these imports consist of branded shoes entering the market at extremely low declared values under the broader category of used clothing, creating unfair competition for local manufacturers.
In response, the delegation proposed introducing a separate HS code specifically for used footwear, which is presently classified within the broader category of used clothing and accessories.
They said the current classification makes it difficult for regulators to accurately track footwear imports, determine correct valuations, and implement targeted regulatory measures for the sector.
During the meeting, the Joint Secretary (Tariff) at the Ministry of Commerce informed the minister that the proposal to establish a separate HS code for used footwear has been placed on the agenda of the upcoming Tariff Policy Board meeting.
Officials also noted that after consultations and approvals, the proposal could ultimately be incorporated into the upcoming federal budget.
Responding to the concerns raised, Jam Kamal acknowledged the leather and footwear industry as a high-potential export sector and reaffirmed the government’s commitment to supporting local manufacturing while encouraging export-led growth.
The minister urged industry stakeholders to improve export performance and strengthen Pakistan’s presence in global footwear markets. At the same time, he stressed that locally produced footwear should remain reasonably priced and accessible for domestic consumers.
The meeting also covered broader steps to improve customs valuation practices, address regulatory issues related to used imports, and promote investment in export-oriented footwear manufacturing.
