ISLAMABAD, July 06 (ABC): The government plans to establish a Rs9.8 billion footwear industrial hub near Lahore to attract foreign investment.
According to official documents available with Wealth Pakistan, the Ministry of Industries and Production will sponsor the project. The Small and Medium Enterprises Development Authority (SMEDA) will serve as the lead executing agency.
The Board of Investment (BoI) and provincial industry departments will act as lead partners.
Hub to support footwear industry
Pakistan’s footwear sector has technical capability. However, most production remains concentrated in informal and semi-organised units, particularly around Lahore.
The country lacks a dedicated footwear industrial zone. As a result, manufacturers face fragmented production, high logistics costs, limited technology upgrading and weak capacity to attract large-scale investment.
The planned hub will address these gaps by creating a purpose-built industrial platform. It will bring investment, technology, compliance services and common infrastructure together in one place.
Project cost and timeline
The project aims to establish a specialised footwear manufacturing hub near the Lahore cluster. It will provide a compliance-ready platform for technology adoption, production expansion and private investment.
The total Public Sector Development Programme (PSDP) requirement stands at Rs9.8 billion, with no foreign exchange component.
The government has proposed Rs280 million for FY2026-27, Rs5.32 billion for FY2027-28, Rs2.8 billion for FY2028-29 and Rs1.4 billion for FY2029-30.
The project is expected to be completed over five years.
Modern infrastructure and technology
The scope of work includes feasibility studies, site selection and master planning.
It also includes internal roads, boundary walls, electricity distribution networks, gas supply, water and sanitation facilities, drainage systems, common utility buildings, green spaces, effluent management systems and common facility areas.
A major component will focus on technology adoption. The government plans to establish a technology demonstration centre equipped with modern cutting lines, injection moulding equipment and automated stitching machinery.
This centre will support technology transfer to occupant firms. It will also help manufacturers move towards higher-value and export-oriented production.
Shared facilities for manufacturers
The project also proposes shared testing and quality control laboratories.
In addition, the hub will provide storage for chemical and material inputs, safety facilities, buyer meeting spaces, showroom facilities and other common services.
These shared facilities will reduce costs for manufacturers and improve compliance with buyer requirements.
Implementation and oversight
Under the implementation plan, SMEDA will lead project design, procurement and technical coordination.
The BoI will handle investor facilitation, allotment policy development, incentive packages, registration and one-window services for hub occupants.
Meanwhile, provincial industry departments will coordinate land acquisition, provincial approvals and interaction with local government.
A high-level steering committee will provide executive oversight. It will include the Ministry of Industries and Production, SMEDA, BoI and the provincial government.
Expected impact on exports
The expected outcomes include a fully developed and operational footwear industrial hub, organised industrial plots and shared facilities.
The project also aims to increase private investment, expand production capacity, improve access to technology and compliance services, and support footwear export growth targets.
