Build It: Shahid Butt and the Evolution of Pakistani Knitwear
Welcome back, fashion tech enthusiasts!
In this edition of our Build It series, we dive into a story that perfectly captures the intersection of legacy and innovation. Shahid Butt is the CEO of Shahkam Industries, a leading vertically integrated knitwear manufacturer based in Lahore, Pakistan. The business was set up in 1992 on a small scale and has since scaled impressively. His story is one of tradition, transformation, and technological innovation. This article accompanies our Build It series on our podcast, Venturing Into Fashion Tech.
Listen to the full conversation:
From Family Legacy to Leadership
Shahid grew up surrounded by textiles. His father founded Shahkam Industries after relocating from Hong Kong and Taiwan. At the time, Pakistan’s government offered aggressive tax breaks to stimulate the garment sector. Shahid initially left for UCLA, but after graduating, returned in 1996 to join the family business full time.
As the only son in a culturally traditional household, taking over the company felt less like a choice and more like a natural progression. Still, Shahid embraced the role with conviction. Today, the company spans 1.5 million square feet and employs over 7,000 people.
The Economic Backbone of Pakistan
The textile and garment sector is central to Pakistan’s economy. It contributes approximately 8.5% to the GDP and generates around $ 20 billion in exports. Roughly 15 million people work in the industry, which includes hundreds of factories concentrated in Lahore, a city of 11 million known for its textile heritage.
Textile & garments account for ~46% of total manufacturing output
Production infrastructure includes over 1,221 ginning units, 442 spinning units, and more than 400 small and large spinning/loom operations
Pakistan is the fourth-largest cotton producer and has the third-largest spinning capacity in Asia, contributing ~5% to global spinning production
The knitwear sector contributed approximately 12% of Pakistan’s total export earnings, generating around US$2.2 billion annually, with long-term growth averaging over 15% per year.
Vertical Integration and Knitwear Manufacturing
Shahkam Industries’ strategy focuses on vertical integration. They manage nearly every step of the production process—from knitting and dyeing to finishing and packaging—under one roof. This approach allows them to reduce transportation costs, speed up delivery times, and tightly control quality and compliance.
However, vertical integration comes with its own challenges. While managing every step of the production process offers control and efficiency, it also drives up fixed costs, from energy-intensive machinery and labor to the upkeep of expansive facilities. For manufacturers like Shahkam, this means the traditional model of producing bulk basics at razor-thin margins is no longer sustainable. To stay profitable, they must move up the value chain by offering more fashion-forward products, quicker turnaround times, and customizable services that justify higher price points.
As Shahid puts it, “If you’re covering big overheads, you need better selling prices.” This shift doesn’t just require operational adjustments — it demands a new way of thinking.
Pictured: Peter Jeun Ho-Tsang, Abdul Moiz Sajjad, and Shahid Butt
Shifting Mindsets and Embracing Data
For Shahid, embracing sustainability starts with a mindset shift.
"You have to understand your place in the world before you can create real change," he says. That awareness also extends to technology. Shahkam Industries partnered with data analytics firm WiMetrix to streamline operations. With real-time data, they’ve improved everything from production scheduling to delivery timelines.
Shahid describes the transformation as night and day. "Before, we were agents of chaos. Now we have control," a candid reflection of the learning curve many manufacturers face when digitizing traditional operations.
Pakistan’s garment industry offers immense potential. It has already proven to be a stepping stone for economic development in countries such as China, Vietnam, and Egypt. With a rapidly growing population, the sector provides critical employment, especially in low-income areas where upward mobility is possible.
Despite facing challenges like high energy costs and shifting global demand, Pakistan’s top 100 factories rank among the best in the world. Shahid believes more brands should explore partnerships with manufacturers in the region.
Sustainability in Practice
Environmental responsibility is a growing priority for Shahkam Industries. The company uses a biofuel boiler powered by recycled coal and rice husks instead of gas. Solar energy now accounts for 20% of their electricity, with plans to scale to 50%. Their wastewater treatment plant ensures that dyeing effluents are properly processed and turned into sludge rather than polluting waterways.
Garment and cutting waste is also recycled or donated. Shahkam regularly sends overages to charities and orphanages, often at the request of international clients. These initiatives reflect not only compliance with global standards but also a mindset rooted in community support and responsible production.
“Pakistan is a hidden gem," he says. "The customers who’ve worked with us have seen the value.”
Shahid’s story is a compelling case study in how tradition, innovation, and resilience can come together to build a globally competitive, ethically responsible business.
Want to Learn More and Connect?
Curious how WiMetrix brings data to life on the factory floor? Book a demo below to see it in action. Learn more about WiMetrix and explore our broader innovation ecosystem at Beyond Form.
Connect with Shahid Butt on LinkedIn to follow his work.
