Pakistan's exports of readymade garments increased by 9.36 per cent for the first time in Q3 of this year as compared to the same period last year. The readymade garment industry has emerged an important small scale industry as its products have a large demand both at home and abroad.

The local requirements of readymade garments are almost met by this industry. The garment industry is also a good source of employment to a large number of people at a low capital investment. The industry mainly uses locally produced raw materials. Most of the manufacturing machines used by this industry are imported or locally made and assembled.

Production of garments depends on export orders.  These orders have somewhat risen in terms of value, but have been fluctuating widely in terms of quantity. One problem is that while the European Union has opened up its markets to duty-free imports from Pakistan, the country’s garment industry is not really able to grab the opportunity. Garment manufacturers claim the government’s restrictive import policies are blocking access to new raw materials, which they require to diversify their product lines to take full advantage of the duty-free access.