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Project to develop garment factory Essay

Pakistan emerged on the map of the world as an independent state in August 1947. Pakistan is situated in North West of South Asia. In the north the border of Pakistan touches the border of Sinkiang province of China in the North West lies Afghanistan. In the West Iran is situated in the east of Pakistan. India and in the South the Arabian Sea. So, Pakistan has very important geographical position. Before Independence, the territories which become part of Pakistan were industrially very backward. There were only a few factories here & there also had very little production capacity. In the beginning its economy was dependent on agriculture. The country has undergone a gradual change in its economy from agriculture to industrial activities.

Ready-made garment industry is one of the important segment of textile industry. The consumption for garment products is very high in almost all countries. Pakistan garment industry has made significant progress & has acquired capabilities of product in large volume of quality garment for domestic consumption as well as for exports. Now in Pakistan trend is change small & large unit are coming up with proper planning. There are over 4000 large & small garment factories in Pakistan. The

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real growth in garment industry in Pakistan has taken during 1982 to 1988.

Pakistan enjoys an advantageous position in the manufacturing of readymade garments having the essential raw material as well as cheap labour. Since 1985-86 domestic consumption of garments has recorded substantial increase. Because people to buy readymade garment an account of fashion trend attraction design & relative cheap men & readymade garment also emerged as one of the important export oriented industry of Pakistan. U.S.A, U.K, Germany, France, Saudia Arabia, Dubai, Canada, Italy & Newly born Russian States are the main buyers of Pakistani garments. In recent export of Pakistani garments to Japan & Russia states is increasing & it have great potential in these countries.


The major purpose of this study is to determinate the feasibility of establishing a medium size readymade garment project in Lahore, Pakistan. The main activities will be to produce readymade garments for domestic consumption. The project study will focus an various aspects such as organizational, financial, technical & marketing. The marketing aspect will take into account the target markets growth & competition to be faced. The other aspects will cover the critical factors related for each of the functional area like any other project undertaking. Varied problems & constraints can be expected. This study aim to limit the analysis of garment industry from 2000-2004 as the basis for marking the production.


The business of garment industry highly competitive nature so the study of that business is significant & timely. One of the tends of management is that one has to allocate his resources efficiently if one is to maximize reduces he can get from it. The importance of the process of resources allocation is viewed against the back drop of existing business & economic situation. The study is an effort to determine the viability of returning into garments business.

From the point of view of the proponents it can be used as a measure as to whether a not the project is worth investing given the projected returns. Consequently, it will serve as a barometer as to whether the venture can maximize the benefits derived from their limited investment. Other parties & entities can beneficial from the study which can provide them with a good working knowledge on the various factors to consider when embarking an project of a similar nature.


The project is located at Multan Road Lahore. Here the vast place will available. Lahore is developed city also a big market for garment consumption base. Here skilled man-power is with in reach & electricity. Gas, water & public transport. Other wise the worker will have to be provided transport in company arranged buses. Readymade garment industry is one of the important segment of cotton textile industry. During the past decade the readymade garment industry has made significant progress & has acquired capability of producing large volume of quality garments for domestic consumption as well as for exports. the readymade garments manufacturing is an export oriented & labor intensive industry.

Major export countries of Pakistani ready made garments are U.S.A, UK, France, Germany, Saudi Arabia, Dubai, Nether Land, Japan & many other. The main garment items for local market are cotton blended shirts, T shirts, children suits, school uniforms, some men’s & women’s pants, bush shirts, coats, jackets, sport shirts jeans, night suits & doctors and nurses coats. Pakistan mainly exports cotton made articles which include shirts.

T shirts, bush shirts, coats, pant, maxies, half pants, skits, blouses, children suits, outer & some ladies oriented garment with embroidery work. The quota were fixed by the export countries for Pakistan garments which blocked further penetration. In these countries, they also developed strategy to remove these quota restriction named, “General agreement on tariff & trade”. According to this agreement the developed countries can reduced the quota system upto 2005 & also reduced the duties upto 30% with the help of this incentives the business of garments industry is cover a large area of business.


The descriptive & historical approach were used in this study. These methods determine the status of the phenomenon under investigation, interprets, the data gathered & identifies the economic implications & their relationship. The analysis is based on the availability of data gathered from secondary sources demand for garments was projected using statistical line based on the available time series.

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