During the first five months of the fiscal year (July to November), Pakistan exported 6,492,000 pairs of footwear – including leather, canvas and other footwear – worth $30.119 million compared with 4,444,000 pairs of footwear exported in the same period in 2003. This equates to an increase of 46.1% year-on-year, however, the dollar value of footwear exports actually decreased by 10.75% in a year-on-year comparison. This was due to a decrease in leather footwear exports.

The value of leather footwear exports fell from around $30 million in 2003 to $20 million in 2004. In a month on month comparison the sector saw a drop of 38% in leather footwear exports from $4.9 million in October 2004 to $3.042 million in November.

The Pakistan Footwear Manufacturers’ Association (PFMA) has asked the government to take steps to halt the decrease in footwear exports. In a statement, a spokesman from the PFMA said that the increase in petrochemical-based materials, a rise in import duty, a reduction in duty drawback, and the high infrastructure costs in Pakistan are the main reasons as to why exports are declining. He also added that the European Union which receives almost 50% of Pakistan’s shoe exports is going to once again impose import duty - that was waived after 9/11 – which will add a further burden on the struggling industry.