Pakistan’s cost-competitive garment makers are drawing attention from multinational brands, which are looking to expand their supplier base. Globally competitive Pakistani exporters remain few and far between. The economy still centers around production of cotton, a commodity, while manufacturers have been slow to embrace automation. But those that have gained a global foothold may benefit from the country's depreciating currency -- the rupee has lost a third of its value in the last two years, which makes Pakistan exports cheaper.
Chinese garment makers looking to export to the West are attracted to Pakistan, which has duty-free access to many western markets due to its status as a less developed economy. In addition to bringing in investment, China’s overtures have also led to an influx of Chinese business people and workers, particularly on construction projects. Whereas westerners doing business in Pakistan tend to stay only a few days at a time, the Chinese have more often settled in and become a part of local communities.
Pakistan garment companies are fighting hard to break into the supply chains of some of the world's biggest fashion brands as the country races to catch up with Bangladesh and other Asian apparel heavyweights. Terror continues to haunt the neighborhood.
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