Under the “Made in Pakistan” initiative, the government has made the decision to assist and attract big global brands to Pakistan by permitting them to increase sourcing with local businesses in their joint ventures.
Govt. To Bring Top Global Brands in Pakistan
Through this initiative, these international brands will then have the opportunity to use office spaces for their business outlets as a means of incentivizing their physical presence in Pakistan.
According to a senior Commerce Ministry official, the government intends to use upfront funding from the Export Development Fund (EDF) to cover the first half of costs.
Compared to 97% from China and Vietnam, 83% from Bangladesh, and 76% from India, only 48% of US apparel companies source from Pakistan.
U.S Moving From China
But as a result of the ongoing trade spat between the US and China, US companies are clearly moving their sourcing from China to other nations.
In light of this, officials in the commerce ministry have stepped up their efforts to persuade more American businesses to source from Pakistan.
Based on surveys from 30 of the top US fashion companies, the USFIA Fashion Industry Benchmarking Study reports that 69% of businesses are optimistic or cautiously optimistic about the US fashion industry for the next five years.
Their plans for expansion show how important environmental sustainability and risk mitigation in the supply chain management are becoming.
U.S Fashion Industry Shift
From “China plus Vietnam plus many” to “Asia plus Rest of the World,” the US fashion industry is changing.
For US fashion companies, finding a new sourcing base outside of China is crucial, with almost 80% of them aiming to cut back on apparel sourcing from China in the next two years.
Pakistan can take advantage of these two opportunities: firstly, it can directly increase its sourcing to foreign companies seeking to decrease their sourcing from China.
Secondly, it can serve Chinese companies seeking to outsource their production outside of China.
Made in Pakistan Roadshow
Leaders in Pakistan’s textile and apparel industries will host a “Made in Pakistan” roadshow at the Heimtex exhibition, which takes place in Frankfurt, Germany, from January 9–12, 2024.
The goal of this event is to persuade international industry leaders to expand their physical footprint of sourcing houses in Pakistan.
The nation’s industry booths will be constructed for the Heimtex exhibition in order to highlight its export potential.
Businessmen from Pakistan will expand their networks with executives in the global textile and apparel industries.
In addition, roadshows will take place in January and February in a number of foreign cities, including Paris, Miami, New York, and Los Vegas.
To read our blog on “Global brands and the textile sector explore going net-zero,” click here.