Published: August 15, 2025  By Business Desk
Pakistan’s second-hand clothing imports have hit an all-time high — 1.137 million tonnes, valued at $511 million in the last fiscal year. That’s not just a trade statistic; it’s a reflection of a nation grappling with rising poverty and shifting consumer priorities.
With nearly 45% of the population now living below the poverty line, according to the World Bank’s updated threshold of $4.20/day, landa bazaars — the country’s bustling flea markets — have become more than just shopping destinations. They’re survival hubs.
📈 What’s Driving the Surge?
•     Affordability: Used jeans for Rs. 300–400, shirts for Rs. 250–300, and sports shoes for Rs. 600–800 — compared to new branded shoes priced at Rs. 4,000–5,500.
•     Global sourcing: Imports primarily come from Europe, USA, Japan, Korea, China, and Canada.
•     Re-export model: Exporters in Pakistan’s special zones sort and re-export high-quality items, with only 10–20% sold locally.
💰 Tax Burden on Traders
Despite the demand, second-hand clothing traders face a complex tax structure:
•     10% regulatory duty
•     5% customs duty
•     6% advance income tax
•     5% sales tax
•     Rs. 36/kg duty on clothes, Rs. 66/kg on shoes
The Finance Bill 2024 has added more pressure, designating importers as withholding agents and requiring them to collect advance tax from distributors — up to 2.5% for non-compliant retailers.
🗣️ Voices from the Ground
Muhammad Usman Farooqui, General Secretary of the Pakistan Second-Hand Clothing Merchants Association, calls for urgent tax relief:

He also highlighted the informal nature of the trade — many sellers lack fixed locations or registration with the FBR, making compliance nearly impossible.

🧵 Final Stitch
This record-breaking import volume isn’t just about fashion — it’s about resilience. As Pakistan navigates economic headwinds, the second-hand clothing sector stands as both a lifeline and a policy challenge. Whether relief comes through tax reform or targeted support, one thing is clear: the landa bazaar is no longer on the margins — it’s at the heart of the economy.