Proposed Lahore-based project aims to modernise footwear manufacturing, boost exports and strengthen foreign investment
ISLAMABAD: The federal government is planning to establish a Rs9.8 billion Pakistan footwear industrial hub near Lahore to attract foreign investment, modernise the country’s footwear industry and strengthen export competitiveness.
According to official documents, the project will be sponsored by the Ministry of Industries and Production, with the Small and Medium Enterprises Development Authority (SMEDA) serving as the lead executing agency. The Board of Investment (BoI) and provincial industry departments will act as key implementation partners.
Footwear Industry Set for Modernisation
The proposed industrial hub is designed to address long-standing structural challenges facing Pakistan’s footwear sector, which, despite possessing strong technical expertise, remains largely concentrated in informal and semi-organised manufacturing clusters around Lahore.
Officials said the absence of a dedicated footwear industrial zone has led to fragmented production, higher logistics costs, limited technology adoption and reduced capacity to attract large-scale domestic and foreign investment.
The new hub is expected to provide a compliance-ready manufacturing platform that will facilitate technology transfer, production expansion and increased private-sector participation.
Rs9.8 Billion Project Under PSDP
The project has been estimated to cost Rs9.8 billion under the Public Sector Development Programme (PSDP) and does not include any foreign exchange component.
Funding has been proposed in phases:
FY2026-27: Rs280 million
FY2027-28: Rs5.32 billion
FY2028-29: Rs2.8 billion
FY2029-30: Rs1.4 billion
The government expects the project to be completed within five years.
Modern Infrastructure and Technology Centre
The proposed footwear hub will include comprehensive industrial infrastructure, including feasibility studies, site development, internal roads, boundary walls, electricity and gas connections, water supply, sanitation systems, drainage networks, green spaces, effluent treatment facilities and common utility buildings.
A major feature of the project will be a technology adoption centre equipped with modern cutting lines, injection moulding machines and automated stitching equipment to help manufacturers upgrade production processes and move towards higher-value, export-oriented products.
The hub will also provide shared testing and quality-control laboratories, raw material storage facilities, safety infrastructure, buyer meeting spaces, showrooms and other common services for manufacturers.
SMEDA and BoI to Lead Implementation
Under the implementation framework, SMEDA will oversee project planning, procurement and technical coordination, while the BoI will facilitate investors through one-window services, develop investment incentive packages and manage industrial plot allocation.
Provincial industry departments will coordinate land acquisition, regulatory approvals and engagement with local authorities.
A high-level steering committee comprising representatives from the Ministry of Industries and Production, SMEDA, the BoI and the provincial government will supervise implementation.
Boosting Exports and Investment
The government expects the Pakistan footwear industrial hub to attract significant private investment, expand manufacturing capacity, improve access to advanced production technologies and enhance compliance with international standards.
Officials believe the project will strengthen Pakistan’s position in global footwear markets, increase exports and generate new employment opportunities while supporting the country’s broader industrial development strategy.