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 The scheme was withdrawn in 2008 because of suspicions that allocated funds were being misused.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.