The Sports Goods Sector in Pakistan - TRTA i

HS codeProduct category640620 Outer soles and heels, of rubber or plastics640691 Parts of footwear, of wood640699 Parts of footwear (excl. outer soles and heels of rubber or plastics, uppers andparts thereof, and general parts made of wood or asbestos)2.5.2 Pakistan’s footwear exportsPakistan footwear exports amounted to US$155 million in 2005, up 47% from the previousyear. As a percentage of Pakistan’s total exports (1%), the sector is still relatively small, butdefinitely not insignificant. Footwear with uppers of leather or composition leather dominatesthe export sector, making up over 75% of the sector’s exports. The uppers of compositionleather are significant (43% of the sector’s exports). Pakistan is globally a big player in thecomposition leather category -- ranks as the third largest exporter representing 11% of worldexports in value terms. These shoes are primarily exported to the Middle East. Less than 10%of exports of this category of shoes are exported to the UK. There is room for much moreexpansion on this market, which is the world’s largest and growing at a rate of 12% per annum.Boots with uppers of leather and soles of rubber or plastic are also an important export productfor the sector, making up 18% of the sector’s exports. Again these are primarily destined forthe Middle East -- UAE, Saudi Arabia and Yemen. The world’s major market for this product,the United States, is entirely untapped by Pakistan. Over a third of what the US buys in thiscategory of shoe consists of uppers of pigskin, clearly not a segment for Pakistan; neverthelessthe remaining two-thirds are worth further investigation.Other products exported include leather slippers (279 tons), leather uppers and leather solesbelow ankle (173 tons), leather uppers with metal toe-cap (240 tons), and leather uppers withnon-leather soles below the ankle (387 tons). The United Kingdom and various Middle Easterncountries are key destinations.Table 2.7 Pakistan’s total footwear exports and imports, 2001-2005 (US$ million)2001 2002 2003 2004 2005Exports 45.3 71. 3 90.1 105.4 154.5Imports 3.7 6.6 16.6 19.7 23.7Source: Calculations from COMTRADETable 2.8 Pakistan’s major export destinations by shoe category, 2005HS codeProduct categoryValueUS$’000Quantity(Tons)% changeover prev.yearMain destination64 Total footwear 155,490 - 48% Saudi, UAE,Yemen640110 Waterproof footwear 57 6 -34% UAE640212 Ski-boots, snow-boardboots, all rubber/plastic29 2 -77% South AfricaInternational Trade Centre 27