Footwear industry eyes $1b export target

Seeks tax concessions, assistance in capacity development

LAHORE:

Footwear manufacturers, while terming the ban on import of goods a right and wise decision, have expressed hope that the move will lead to 100% local shoe manufacturing over the coming years.

“We have set the shoe export target at $1 billion for 2027, but hopefully we will achieve the goal by 2026,” said Zahid Hussain, Chairman Pakistan Footwear Manufacturers Association (PFMA).

Component and shoe production have increased to 20% and exports have crossed the target of $180 million, he said while speaking at a press briefing on Monday.

Hussain called on the government to keep the import ban in place for at least five years so that the industry could grow and exports could increase.

“This measure will also lead to the creation of 25,000 jobs for engineers, diploma and degree holders as well as skilled workers,” he said.

The association chairman pointed out that the footwear manufacturers were part of a government strategy for cluster development, which would help develop the shoe manufacturing sector and enable it to compete with Brazil, Vietnam and China.

“We shall focus on capacity development with the help of Tevta (Technical Education and Vocational Training Authority) to enhance our productivity,” he said, adding that the government should grant tax concessions.

“The government has given tariff protection to the sector and it should also bring the sector under the Drawback of Local Taxes and Levies (DLTL) scheme so that the industry could progress and play an effective role in income generation.”

The footwear industry says it is facing some challenges which need attention of the policymakers for immediate resolution.

Published in The Express Tribune, June 7^th, 2022.

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