KARACHI: Pakistan’s leather and footwear industry has warned that rising imports of used shoes are distorting the domestic market and limiting export growth, according to a commerce ministry statement issued on Thursday after industry representatives met Commerce Minister Jam Kamal Khan.

The meeting focused on export potential, domestic market challenges and regulatory concerns linked to the import of second-hand footwear, which industry leaders say is undermining local manufacturers despite significant production capacity.

“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,” the delegation said, according to the commerce ministry statement.

“A considerable portion of this capacity remains underutilized due to market distortions created by the growing influx of used footwear imports,” it added.

Industry representatives told the minister that around 30-40 percent of Pakistan’s domestic footwear market is currently supplied through imports of used shoes, many of which enter the country under the broader customs category of used clothing and accessories.

They said branded footwear is often imported at very low declared values under this classification, creating what they described as unfair competition for domestic manufacturers.

To address the issue, the delegation proposed introducing a separate Harmonized System (HS) code for used footwear, which would allow regulators to better track imports, improve customs valuation and introduce sector-specific regulatory measures.

The commerce ministry said the proposal has been placed on the agenda of the Tariff Policy Board and could eventually be considered as part of the upcoming federal budget following consultations and approvals.

The commerce minister acknowledged the importance of the leather and footwear sector as a potential export driver and reiterated the government’s support for local manufacturing and export-led growth, the statement said.

He also encouraged industry stakeholders to expand exports while ensuring locally produced footwear remains affordable for domestic consumers.

Both sides agreed to maintain close coordination to help the sector boost employment, increase production and expand Pakistan’s presence in international footwear markets.