Shoes export up 13pc despite R&D removal and recession

LAHORE - The special subsidized rates for Pakistans worldwide footwear trade have helped increase the
exports to the extent of 250 per cent in the last couple of years. Export of shoes has shown an increase of 13 per
cent in the current fiscal year till Apr against the corresponding period of last year.
If the support was not withheld the footwear industry would have certainly crossed the $ 200 million limit.
R&D support has been granted to textile sector for shipments made till 30 June 2008 but it has not been
restored to Footwear Sector, which is disheartening and PFMA would appeal to remove the discrimination.
This was stated by Pakistan Footwear Manufacturer Association Chairman Nasir Anwer Sheikh while
presenting the welcome address at the opening ceremony of the 11th Pakistan International Footwear Show
(PIFS) 2009 on Saturday. Delegates from different national and international footwear manufacturing
organizations were also present at the event. The two-day PIFS-2009 is a joint venture of the Pakistan Footwear
Manufacturers Association (PFMA) and the Trade Development Authority of Pakistan. The footwear show was
inaugurated by the TDAP Chief Executive Mohibullah Shah.
Anwer Sheikh said that during the recession time, the world has invested more budget in the R&D sector, urging
the government to restore 6 per cent R&D Support to footwear from the date of discontinuation.
He further said that the footwear manufacturers are subjected to a variety of local taxes. This not only increases
the cost of exportable products but also wastes a lot of time in dealing with government departments, he added.
He suggested the government that only one agency should deal with the manufacturers.
It is mentioned that our competitor governments like India, Bangladesh and China heavily subsidize the exports
and export rebates are given to the exporters in one form or the other.
He said that Pakistan is one of the leading exporters of good quality leather but its ability to convert it into value
added product is still limited because of various reasons. According to figures available, there are about 500
fully organized units in the country who are producing good quality shoes and have started proving their
presence in the world market.
It may be mentioned that boosting exports is in the interest of our government also as this industry is labour
intensive, employing half a million labour force at present. He said that we have to compete in the international
markets to sustain our footwear products and we are in dire need of a training institute for training of designers
who could train and advise our industry on latest trends in the int'l market.
He said that some promising youths should be sent abroad on scholarships for training in this field who would in
turn impart training to the local trainees. It is requested that an institute already working in Gujranwala, i.e.,
Institute of Leather Technology should be upgraded to include training of designers. Moreover, another institute
at Lahore should be established for which feasibility study has already been conducted 2 years ago but no
progress was seen further.
It is extremely fortunate that 90% of our export target has been achieved despite the recession.
He requested that TDAP should help us in obtaining GSP Plus status in EU and getting the status of MFN in
USA with its associated facilities. He said that custom duties on important items such as. Soles, Lasts, Insole
board and Toe puff and Back Counter Thermoplastic Sheets are reduced to zero percent so that our exports can
flourish.