Footwear industry in Pakistan: Export opportunities and challenges

The footwear industry in Pakistan has evolved into a dynamic sector, featuring unique designs and styles that blend traditional craftsmanship with modern appeal to meet global standards. Driven by a rising demand for high-quality, affordable footwear, this industry is successfully catering to local markets while exporting to over 60 countries, including key regions like Europe and the United States.

In this guide, we will explore the footwear export opportunities available to Pakistani manufacturers, identify the challenges faced, and outline strategies to overcome these obstacles.

Current state of the Pakistani footwear industry

Footwear industry market size

According to Statista, the revenue in Pakistan's footwear market is estimated to be US$5.8 billion in 2024, with an annual growth rate of 4.37% projected from 2024 to 2029¹. This steady growth not only reflects the resilience of Pakistan’s footwear industry but also indicates an increasing footwear industry market share on the global stage.

Types of footwear shoes produced

Pakistan produces a diverse range of footwear, including:

• Boots
• Formal shoes
• Sandals and slippers

With an expected market volume of 412.1 million pairs by 2029, Pakistani footwear manufacturers are making significant strides to increase output and market share, with key export markets including the Middle East and North America.

Export opportunities for Pakistani footwear

Pakistan is therefore strategically positioned to capture the market share previously dominated by China. Notably, in 2023, leading retailers like H&M, Jo-Ann Stores, and Walmart have been actively sourcing footwear from Pakistan, further highlighting the country's potential as a key player in the global footwear market.

Competitive advantages of Pakistani footwear

• Cost-effectiveness: Lower labor costs enable manufacturers to produce footwear at competitive prices.
• Abundant quality leather: Pakistan boasts the best processed leather globally, with its tanneries adhering to the standards established by the International Organization for Standardization (ISO), European regulations, and the Leather Working Group (LWG).
• Skilled craftsmanship: Regions like Peshawar and Sialkot are renowned for their centuries-old tradition of exquisite leather craftsmanship. Additionally, Pakistan boasts gold- and platinum-rated leather manufacturers, positioning it alongside the world's top tanners. To further elevate product quality, Pakistani footwear manufacturers have also employed technicians from Italy, Brazil, and China.

Government initiatives to boost footwear exports

Additionally, the government has taken several steps to support the growth of footwear exports, including:

• Special Economic Zones (SEZs): The SEZs, established under the China-Pakistan Economic Corridor (CPEC), offer a 10-year tax holiday to attract foreign investors and joint ventures, enhancing production capabilities.
• Rebates: Exporters benefit from attractive rebates and streamlined export procedures, making Pakistani footwear more competitive internationally.

Challenges facing the Pakistani footwear industry

Despite these advantages, the Pakistani footwear industry faces significant challenges that can hinder growth if left unaddressed. 

Infrastructure and logistics

Inadequate infrastructure, including insufficient road and port facilities, can create bottlenecks in the supply chain. These logistical issues not only impact delivery timelines but also increase costs.

Limited access to modern machinery

Without automated and advanced equipment, Pakistani manufacturers struggle to produce high volumes of footwear that match the quality and uniformity expected in global markets. This reliance on older equipment also makes it harder to produce complex footwear styles, which limits product range and appeal to diverse international buyers.

Skill gaps

The Pakistani workforce is renowned for its traditional craftsmanship, yet there is a shortage of advanced manufacturing skills needed for modern, large-scale production. Many workers lack training in areas like machine operation, quality control, and international design trends, creating a skills gap that hinders the industry's ability to innovate and keep up with competitors. 

Intense international competition

Pakistan faces strong competition from established footwear exporters, such as India and Vietnam, which dominate the global market through economies of scale, established reputations, and advanced production technologies. 

For Pakistani manufacturers to capture a greater market share, they must differentiate through unique product offerings and adopt competitive pricing strategies.

Strategies to overcome challenges and boost footwear exports

Investment in technology and infrastructure

Modernizing production facilities with state-of-the-art equipment can significantly increase both output and quality. This includes investing in automated machinery for cutting, stitching, and finishing processes to ensure precision and consistency. Efficient warehousing and streamlined distribution networks can also reduce lead times and enhance the supply chain, ultimately helping Pakistani footwear brands meet international demand more reliably.

Workforce training and skill development

Specialized skill-building initiatives focused on machine operation, quality control, and design innovation will enable the workforce to handle modern machinery and meet the demands of global buyers. This boost in worker competency will also allow manufacturers to adapt quickly to changing footwear industry trends and standards.

Footwear market research and analysis

Conducting a comprehensive market analysis is essential to identify and cater to consumer preferences in target markets. A thorough footwear market analysis on the global footwear market size, consumer tastes, and seasonal trends will enable footwear businesses to optimize their product offerings and prioritize high-demand segments.

Footwear marketing efforts

Branding initiatives might include showcasing the quality of locally sourced leather, spotlighting artisanship, and promoting cultural designs that make Pakistani footwear distinct. Targeted digital marketing, trade show participation, and collaborations with international influencers can enhance brand visibility, helping attract consumers looking for both affordability and authenticity.

Collaboration with government and academia

Collaborative efforts between government bodies, industry leaders, and educational institutions can drive innovation and create a pipeline of skilled professionals. Government incentives, like subsidies for technology upgrades and trade facilitation, can support export readiness. Partnerships with universities and technical institutes can ensure that educational programs align with industry needs, developing a future workforce skilled in manufacturing and design. 

DHL Express: Supporting Pakistani footwear exports with reliable overseas shipping

The Pakistani footwear industry holds immense potential for export growth, thanks to its cost-effective production, unique designs, and good craftsmanship. DHL Express can play a key role in helping Pakistani footwear businesses expand globally by providing efficient overseas shipping solutions. With our extensive network, customs expertise, and value-added services like packaging and shipping insurance, you can effectively overcome logistical challenges and broaden your market reach.

Open a DHL Express business account and unlock access to a wide array of DHL logistics solutions today.