Pakistan Shoe Industry Analysis3however the political threats, socio economic environment and lack of updated technologies areobstruction in the way of progress.This sector has pivotal importance in terms of providing and creating jobs, earning of foreignexchange with the help of exports and fulfilling the local consumption requirements.Both in Pakistan and around the globe, the demand for footwear is increasing. Pakistan is one of the most populous countries in the World and according to an estimate with an average population growth of 2.25 %, about 3 million children have been born during the year 2005-06,signaling the growing demand for footwear in Pakistan. It is also estimated that about 60 percentof the World’s total consumption consists of simple footwear made entirely of non-leather materials and that for the remaining 40 percent only the upper part of the shoe is made of leather.In the manufacturing of footwear, most frequently used material consists upon leather, manmadematerials, rubber / canvas / synthetic and textile along accessories. Different type of shoesare being produced by the local industry e.g. sportsmen, army, disabled persons and safety shoesfor the industrial workers etc. The population of Pakistan is expected to be about 172 million inthe year 2010. Keeping in view the growth in population, the growth in the demand of footwear industry is also anticipated.Footwear industry is changing rapidly. Industry is moving towards high competition because of overcapacity interims of supply and manufactures are offering similar kind of product to almostsame target market. Because of local manufactures and imports of footwear’s from china.
We can also see the growth trends with the help of table that how footwear industry vary in the past:
Pakistan’s share in the international market is hovering at about 1.5% from the last fiveyears, earning an average foreign exchange of US$ 681 million per annum. According toFederal Bureau of Statistics data, Pakistan exports for the year 2001 were about US$ 763million. Out of total leather exports, leather footwear accounts for 50.93%, which makesleather footwear extremely significant.
Value in $ million
LEATHER FOOTWEAR 85115, 85124 & 8514
1995 1996199719981999WORL 21,47723,08322,77122,05321,049Growth % age 7% 1%-3%-5%
University of Management & Technology