ISLAMABAD: Pakistan’s footwear industry could gain new manufacturing capacity as China’s Huaxin (Shenzhen) Investment Group plans to establish 16 sports shoe production lines in partnership with Pakistan’s Forward Group.
The proposed project is expected to expand local sports footwear manufacturing, support technology transfer and create new export opportunities at a time when Pakistan is shipping more footwear overseas but earning less per pair.
The cooperation agreement was signed in Islamabad on August 4 by Huaxin Chairman Liao Yiquan and Forward Group Chairman Khawaja Masood Akhtar. The two companies plan to develop a footwear and apparel production base in Pakistan, with the 16 sports shoe production lines designed for annual output running into tens of millions of pairs.
Pakistan footwear exports rise, but unit value falls
Ministry of Commerce data show Pakistan exported 23.465 million pairs of footwear worth $175.65 million in FY2025-26, up from 19.049 million pairs valued at $176.48 million a year earlier.
Export volume rose 23.18%, while earnings declined 0.47%. As a result, the average export value fell from about $9.3 to $7.5 per pair.
The trend points to a growing need for Pakistan to expand into higher-value footwear categories and strengthen its manufacturing base.
Leather footwear exports fell 5.22% to $130.38 million during the year, while exports of other footwear increased 19.63% to $43.64 million, reflecting a shift in the country’s footwear export mix.
The proposed Chinese investment could also support Pakistan’s broader sports manufacturing sector. Sports goods exports increased 10.08% to $424.35 million in FY2025-26, including an 11.72% rise in football exports to $256.72 million.
At the same time, the Pakistan Economic Survey 2025-26 recorded a 2.25% contraction in the wider leather products segment of large-scale manufacturing during July-March FY2026.
Industry sees potential for jobs and technology transfer
Ahmed Fawad Farooq, Secretary General of the Pakistan Footwear Manufacturers Association, told Wealth Pakistan that practical work on the production lines had not yet started but described the agreement as an encouraging development for the sector.
He said a project of this scale could create employment while bringing Chinese production technology, technical expertise and management practices into Pakistan.
Farooq said stronger manufacturing capabilities could help local producers compete in sports footwear segments where Pakistan currently has a relatively limited presence in international markets.
He also noted that some labour-intensive manufacturing could gradually move from China to lower-cost production destinations as costs rise.
If implemented successfully, he said, the project could strengthen Pakistan’s position as a sourcing and manufacturing base for international footwear brands.
Project could deepen Pakistan’s role in global footwear supply chains
The cooperation could draw on Huaxin’s manufacturing and supply-chain links with the Chengdu-Chongqing footwear and apparel industrial cluster, creating opportunities for production expertise to be transferred to Pakistan.
A Trade Development Authority of Pakistan official, speaking on condition of anonymity, said the proposed investment could help broaden Pakistan’s export mix and strengthen its presence in international footwear markets.
The official said the project’s significance would extend beyond added production capacity because export-oriented manufacturing increasingly depends on consistent quality, efficient production systems, timely delivery and access to global supply chains.
The partnership between Forward Group and Huaxin could also create opportunities for Pakistani suppliers, skilled workers and supporting industries if local firms are progressively integrated into the production chain.
Greater local sourcing of components, technical skills development and transfer of production and management expertise could increase domestic value addition and support the growth of related industries.
The TDAP official said the project’s long-term export impact would depend on implementation and its ability to secure international buyers.
If completed as planned, the 16 production lines could combine Chinese manufacturing expertise with Pakistan’s lower-cost production base and help the country move further into higher-value sports footwear exports.
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