Pakistan’s rising poverty drives record surge in second-hand clothing imports, totaling $511 million in FY25

Pakistan’s imports of second-hand clothing reached a record value of $511 million in the last fiscal year 2024-25, compared to 990,266 tonnes ($434 million) in FY24, driven by growing demand for affordable apparel amid rising poverty. 

This surge in imports reflects growing demand for affordable clothing amid worsening poverty. Many people unable to buy locally made or branded goods are turning to landa bazaars and flea markets, where used clothes, shoes, and accessories are sold at lower prices.

The World Bank’s latest report shows that nearly 45% of Pakistan’s population now lives below the poverty line, set at $4.20 per person per day. The threshold increase has pushed the poverty ratio for lower-middle-income groups to 44.7 per cent, up from 39.8 per cent.

According to Pakistan Second-Hand Clothing Merchants Association (PSHCMA), the surge in imports is linked to rising poverty, with more families depending on affordable used goods. PSHCMA urged the government to reduce import taxes and duties, including a 10% regulatory duty, 5% customs duty, 6% advance income tax, and around 5% sales tax. 

Traders also face a 5% sales tax on profit margins and income tax if annual earnings exceed Rs 600,000. Under the Finance Bill 2024, importers must collect advance tax from distributors and dealers, with higher rates of 2–2.5% for non-registered entities. 

Used clothing is mainly imported from Europe, the USA, Japan, Korea, China, and Canada. Within Pakistan, 60–70% of imports pass through exporters in special zones, who sort higher-quality items for re-export while 10–20% are sold domestically. Import duties are Rs 36 per kg for clothing and Rs 66 per kg for shoes.

Market surveys show imported jeans sell for Rs 300–400, second-hand shirts for Rs 250–300, and used sports shoes for Rs 600–800, compared with new local shoes at Rs 2,500–3,500 and branded shoes from Vietnam or China at Rs 4,000–5,500.