Govt. plans Rs 9.8 bln footwear hub to attract foreign investment

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 6th Jul, 2026) The government is planning to establish a Rs 9.8 billion footwear industrial hub near Lahore in a bid to attract foreign investment.

According to official documents available with Wealth Pakistan, the proposed project will be sponsored by the Ministry of Industries and Production, with the Small and Medium Enterprises Development Authority (SMEDA) as the lead executing agency. The board of Investment (BoI) and provincial industry departments will act as lead partners.

Pakistan’s footwear sector is technically capable but remains concentrated in informal and semi-organised production units, particularly around Lahore.

The absence of a dedicated footwear industrial zone has resulted in fragmented manufacturing, high logistics costs, limited technology upgrading, and weak capacity to attract large-scale domestic and foreign investment.

The planned hub is intended to address these structural gaps by creating a purpose-built industrial platform where investment, technology, compliance services, and common infrastructure can be co-located.

The project objective is to establish a specialised industrial hub for footwear manufacturing near the Lahore cluster, providing a compliance-ready platform for technology adoption, production expansion, and private investment attraction.

The total Public Sector Development Programme (PSDP) requirement has been estimated at Rs9.8 billion, with no foreign exchange component.

The proposed phasing includes Rs280 million in FY2026-27, Rs5.32 billion in FY2027-28, Rs2.8 billion in FY2028-29, and Rs1.4 billion in FY2029-30. The project is expected to be completed over five years.

The scope of work includes feasibility studies and site selection, master planning, construction of 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.

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A major component will be the establishment of a technology adoption platform, including a technology demonstration centre equipped with modern cutting lines, injection moulding equipment, and automated stitching machinery. This is expected to support technology transfer to occupant firms and help manufacturers move towards higher-value and export-oriented production.

The project also proposes shared testing and quality control laboratories, storage for chemical and material inputs, safety facilities, buyer meeting spaces, showroom facilities, and other common services.

Under the implementation arrangement, SMEDA will lead project design, procurement, and technical coordination. The BoI will handle investor facilitation, allotment policy development, incentive packages, registration, and one-window service provisions for hub occupants. The provincial industry departments will coordinate land acquisition, provincial approvals, and interaction with the local government.

A high-level steering committee, comprising the Ministry of Industries and Production, SMEDA, BoI, and the provincial government, will provide executive oversight.

The expected outcomes include a fully developed and operational footwear industrial hub, organised industrial plots, shared facilities, increased private investment, expanded production capacity, improved access to technology and compliance services, and a measurable contribution to footwear export growth targets.