Govt to invest above Rs8bn in footwear sector upgrade

July 01, 2026 (MLN): The government is set to invest Rs8.4 billion over five years to overhaul Pakistan's footwear industry through the upgradation of the Pakistan Institute of Fashion and Design (PIFD) and allied training institutions, which currently lack the equipment, curricula and international linkages needed to meet global standards.

The project will be led by the Ministry of Industries and Production through the Small and Medium Enterprises Development Authority (SMEDA), with NAVTTC, TEVTAs and other training institutions serving as key executing partners.

The initiative centres on footwear manufacturing, design and skills development, APP reported.

Under the sector strategy, the leather export basket is to be rebalanced by 2039, with footwear exports projected to climb to 47% of total leather exports, translating into nearly $1.17 billion.

It was noted that the sector would need to sustain annual growth of 12% to 14% over the next 15 years to reach this target.

The project envisages the establishment of modern shoe production lines, CAD/CAM pattern-cutting systems, testing equipment and material libraries, along with competency-based curricula aligned with international manufacturing standards and buyer compliance requirements.

Workforce development will form a major component, with short courses, diploma programmes and certification schemes targeting both students and existing industry workers, with emphasis on production quality, efficiency, compliance and export-oriented practices.

The funding pattern shows a proposed allocation of Rs1.68 billion for FY2026-27, Rs3.36 billion for FY2027-28, Rs840 million for FY2028-29, Rs1.26 billion for FY2029-30, and Rs1.26 billion for FY2030-31.

The total PSDP requirement is Rs8.4 billion, with no foreign exchange component mentioned in the document.

International collaboration is also proposed with leading footwear training and design institutions in Italy, Spain, Portugal and Vietnam, covering curriculum benchmarking, training and exchange programmes.

SMEDA will coordinate implementation, while NAVTTC will ensure alignment with the national skills framework.

PIFD is expected to play a central role in institutional upgradation, with provincial technical education authorities involved in training delivery and industry bodies, including footwear manufacturers and leather sector associations, participating in curriculum validation and trainee placement.

It was stated that expected outcomes include upgraded training facilities, internationally benchmarked curricula, a stronger pipeline of skilled workers, improved productivity, better quality consistency and enhanced design capability, positioning the initiative as a key part of Pakistan's broader export growth agenda.

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