LAHORE: "The local footwear industry produces 411 million pairs annually with domestic consumption of 424 million pairs annually whereas 24 million pairs are being imported annually contrary to the export of 11 million pairs to leading European countries".
Pakistan Footwear Manufacture Association (PFMA) Chairman Imran Malik, who is also Managing Director of the Bata Pakistan revealed this during a briefing given to Secretary Trade and Development Authority of Pakistan (TDAP) Ahsan Ali Mangi, who visited the Italian-Pakistan Footwear Technical Center (IPFTC) here on Thursday. TDAP Director General Nudrat Hussain was also present on the occasion. The TDAP officials were also briefed on the footwear industry's progress and challenges.
Imran Malik said that Pakistan ranked No 7 in top footwear producing countries of the world with just 0.1 percent share in world footwear exports which consist of $142 billion net worth. In order to increase our world market share and increase productively, the industry need support both from the provincial and federal government to make it leading exporting sector of Pakistan which hold great potential to generate more jobs opportunities domestically, earn foreign exchange and reduce balance of payment gape, he added.
To make the footwear industry as leading exporting sector, he put forward list of impediments that need to be addressed immediately. At provincial level, government must allocate land to PFMA on lease terms to operationalize its functionality. The Punjab government must establish Footwear Park in designated industry zone to help industry increase its export capacity. Similarly, like Italian government, provincial government must announce financial grant for Italian-Pakistan footwear Technology Center that will help the industry to enhance its technical skills and equipped themselves to produce international quality products.
He said the IPFTC testing labs must be accredited by the government to authenticate its certification. The Punjab government may formulate footwear policy to promote footwear sector especially for SMEs that hold the potential to generate more employment at local level. The government must offer financial support to organize footwear exhibitions across the country for local manufacturers and SMEs to promote their products.
Similarly, the federal government needs to formulate friendly policies for footwear industry to increase its production capacity and Investment opportunities. This sector must be declared zero rating for GST to provide tax relief and enhance export rebate. Under FBR Statutory Regulatory Order (SRO 700(1)/2018), government must increase the duty drawback on taxes & levies and extend the regime for maximum benefit to the industry to increase productivity.
There is a need to reduce customs and regulatory duties on import of raw material for footwear sector and withdrawal of addtional cusomes duties on import of raw material used to produce export oriented products by footwear producers.
Copyright Business Recorder, 2020
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