The garment industry is Pakistan's vital most industrial activity by far and is a crucial part of
the country's economy. In the 2007/08 financial year (July 1, 2007-June 30, 2008) the industry
accounted for around 8.2% of the country's gross domestic product (GDP). Also, it exported goods
valued at US$10.6 bn, which represented 55% of national exports. In addition to it , it provided
for employment for 2.84 mn people, representing 40% of the manufacturing workforce. Pakistan is
also the world's fourth largest cotton producer, and cotton has played a principal role in the
expansion of the textile and garment industry. However, man-made fibers are playing a growing role.
The government recognizes the importance of the garment industry to the country's economic
wellbeing and has given support in a number of ways. One measure is the Balancing, Modernization
and Replacement (BMR) program under which finance is provided at a concessionary rate. Also, the
industry is lobbying for the resumption of a scheme to support research and development. The
scheme was withdrawn in 2008 because of suspicions that allocated funds were being misused.
Why Garment sector is essential for the progress of Pakistan is that it is the largest employment creating sector
nearly 2 million people directly employed to it
An additional million dollar creates 460 additional jobs and nearly US$ 3.2 million of exports.