ISLAMABAD: Pakistan’s leather and footwear industry has urged the government to impose a ban on the import of used footwear, arguing that such imports are hurting the domestic industry and are prone to under-invoicing, sources told Business Recorder . In this regard, a delegation representing Pakistan’s leather and footwear industry met with Federal Minister for Commerce Jam Kamal Khan to discuss key issues affecting the sector, including export growth opportunities, 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 a skilled workforce capable of supporting increased production for both domestic consumption and international markets. 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 per year, indicating considerable potential for both domestic supply and export expansion. However, they noted that a significant portion of this capacity remains underutilized due to market distortions created by the growing influx of used footwear imports. Industry representatives informed the Minister that approximately 40 to 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, creating unfair competition for local manufacturers. In this context, the delegation proposed the introduction of a separate Harmonised 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, determine accurate valuation, and implement sector-specific regulatory measures. During the discussion, the Joint Secretary (Tariff) of the Ministry of Commerce informed 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 eventually become part of the upcoming federal budget. Responding to the delegation’s concerns, Federal Minister Jam Kamal 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. At the same time, he emphasized 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. The Pakistan Footwear Manufacturers Association (PFMA) maintained that the influx of used footwear adversely affects domestic manufacturers, particularly small and medium-sized enterprises (SMEs), leading to production displacement, reduced investment, and potential job losses in this labor-intensive sector. According to the association, Pakistan already possesses sufficient local footwear manufacturing capacity to meet domestic demand, and continued imports of used footwear undermine national production capabilities and discourage industrial growth. The association further claimed that trade in used footwear is susceptible to under-invoicing and customs valuation issues, resulting in revenue losses and market distortions. Imported used footwear may also carry harmful pathogens and contaminants, posing potential health and biosecurity risks. The PFMA has urged the Ministry of Commerce to: (i) initiate a formal investigation; (ii) conduct a public hearing, and (iii) recommend a permanent ban on the import of used footwear in order to protect domestic industry, public health, employment, and economic stability. “For the time being, a distinct HS Code 6409.0000 for used or worn footwear of any kind should be created until the government announces a ban on the import of used footwear,” the association stated during its meeting with the Commerce Minister.