The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has called for a comprehensive revision of Punjab’s industrial estate policy for the garment sector, stating that existing frameworks are creating significant barriers to relocation, investment efficiency, and export-oriented growth.
Key Challenges Facing Garment Industrial Estates
PHMA Zonal Chairman Abdul Hameed said that while industrial parks were developed with the objective of boosting exports and facilitating manufacturing, practical challenges on the ground are limiting their effectiveness. While briefing the members of the PHMA on key structural and policy challenges facing Punjab’s garment industrial estates, he urged urgent reforms to improve export competitiveness, compliance readiness, and industrial relocation mechanisms.
Mandatory New Machinery Requirement
Abdul Hameed highlighted that existing industrial park policies requiring investors to install entirely new machinery for relocation are not practical in the current industrial environment. He noted that many garment factories already possess installed production capacity, while a significant portion of machinery remains underutilised due to fluctuating demand and rising costs. In such circumstances, he said, forcing relocation with new machinery investment creates unnecessary financial burden and discourages participation in industrial parks. He stressed the need for a structured relocation policy that allows existing manufacturing units to shift operations into designated industrial estates without mandatory replacement of machinery.
Plug-and-Play Factory Parks Initiative
Abdul Hameed welcomed the Punjab government’s plan to establish plug-and-play factory parks for the garment sector at an estimated cost of Rs13.3 billion, saying the initiative reflects a positive commitment towards promoting value addition and export-oriented industrialisation. However, he stressed that the initiative would achieve its full potential only if practical relocation policies are introduced, allowing existing manufacturers to move into the new industrial parks with their installed machinery instead of being required to make fresh investments in new equipment.
Compliance Infrastructure Concerns
Abdul Hameed also raised serious concerns regarding compliance infrastructure in industrial estates such as Sundar Industrial Estate and Quaid-e-Azam Business Park. He said that international markets, particularly the European Union, now require strict value-chain compliance covering environmental standards, labour practices, chemical usage, and production transparency across the entire supply chain. He noted that dyeing and processing units face especially strict scrutiny under evolving EU regulations.
Stakeholders including representatives of the Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) supported these concerns and emphasised stronger involvement of industry bodies in policy formulation. They recommended that PHMA and PRGMEA be formally included in decision-making processes related to industrial park development and export facilitation. They further proposed that the Ministry of Commerce’s National Compliance Centre (NCC) be fully integrated with garment industrial parks across Punjab to provide technical support and ensure consistent regulatory alignment. Stakeholders said this would improve export readiness and reduce compliance gaps faced by exporters.
Historical Implementation Weaknesses
Former PHMA Chairman Shafiq Butt stated that Pakistan’s industrial estates have historically suffered from weak implementation capacity and lack of coordination between institutions and industry. Former PHMA Chairman Shehzad Azam Khan added that labour availability remains a major issue in remote industrial estates. He suggested transport facilities or residential colonies for workers to ensure stable labour supply.
Land-Use Misuse and Call for Action
During the discussion, PRGMEA stakeholders also highlighted concerns regarding Quaid-e-Azam Business Park, where some industrial plots are reportedly being used for real estate and property trading instead of manufacturing, undermining the purpose of industrial development. Abdul Hameed cautioned that unless issues of machinery relocation, compliance infrastructure, labour facilitation, and land-use enforcement are addressed, Punjab’s garment industrial estates may continue to underperform despite significant investment. He stressed coordinated action between PIEDMC, the Ministry of Commerce compliance centre, and industry associations for effective export-oriented industrial growth.
