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Pakistan Unveils $2.2bn Garments City Plan at Port Qasim

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Photo: Collected

Pakistan’s Ministry of Maritime Affairs has unveiled plans to build a 400-acre Garments City at Port Qasim in Karachi, aiming to expand textile exports, attract private investment and create jobs, according to a statement issued Monday.

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced the project after chairing a meeting on the proposed export-oriented manufacturing cluster, which will focus on high-value apparel production. The first phase, covering 250 acres, is projected to create 138,125 jobs and generate annual exports of around $2.2 billion, according to projections presented at the meeting. Read Here

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Under the plan, 35% of the first phase will be allocated to internal roads, utilities and green areas. The project is structured as a public-private partnership, with a proposed commercial layout of 32 industrial plots of five acres each, though plot sizes could be reduced to two or three acres to accommodate more investors and manufacturing units.

Pakistani textile and denim manufacturer Artistic Milliners has committed to establishing a manufacturing unit at the site with an investment of more than $18 million, incorporating vertical integration and green technologies, the statement said. The company’s involvement marks one of the first confirmed private-sector commitments to the new zone.

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The Port Qasim Authority will provide infrastructure and utilities for the development. Across the overall project, planned utility capacity includes 13 million gallons of water per day, 64 megawatts of on-grid electricity and 750,000 pounds of industrial gas per day, reflecting the scale officials are planning for as the zone develops.

Chaudhry said the initiative would also include a one-window mechanism for exporters, featuring streamlined export processing, specialised customs desks and dedicated transport corridors designed to cut turnaround times for shipments. The government aims to raise the average export value of garments produced at the site to around $8 per piece, as part of a broader push to expand Pakistan’s industrial base and export capacity.

Pakistan’s textile and garment sector remains the country’s largest export earner but has faced persistent headwinds from high energy costs, ageing technology and competition from regional rivals, underscoring the government’s push to develop new industrial zones and special economic areas to draw fresh investment.

The Port Qasim project adds to a growing list of dedicated apparel manufacturing hubs planned or under development across Pakistan, including the Quaid-e-Azam Apparel Park in Punjab. Earlier state-backed efforts have had mixed results: the Lahore Garment City Company, established in 2004 to provide infrastructure for value-added textile manufacturers, has drawn criticism from the Economic Coordination Committee over limited returns on government spending, prompting officials to favour private sector-led models for newer projects.

Officials have positioned the Port Qasim initiative as part of a broader strategy to diversify Pakistan’s export base toward higher-margin, vertically integrated apparel manufacturing, as the country competes with regional rivals including Bangladesh and Vietnam for global sourcing orders.

Government planners say the combination of dedicated infrastructure, streamlined customs processes and private investment incentives is intended to position Port Qasim as a competitive alternative for international apparel buyers seeking new sourcing hubs in South Asia.

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