Economic Profile and Investment Potential of Khanewal District: A Tehsil-Level Perspective

Khanewal District, situated in the southern part of Punjab, Pakistan, is a vital component of the province's economic landscape. With a population exceeding 3.3 million as per the 2023 census, the district plays a significant role in agriculture, industry, and services, contributing an estimated 3-4% of Punjab's overall GDP and around 3% of Pakistan's total GDP. This article provides an analytical overview of Khanewal's sectoral contributions and investment potential, broken down by its four tehsils: Khanewal, Mian Channu, Kabirwala, and Jahanian.

 ________________________________________ 

Agriculture and Livestock Sector 

Agriculture remains the backbone of Khanewal's economy, with approximately 51% of the workforce engaged in farming and livestock. The district has a total cropped area of around 355,000 hectares, producing wheat, cotton, sugarcane, rice, maize, fruits (especially citrus, mango, guava), and vegetables. Livestock is equally prominent, with over 1.4 million animals including cattle, buffaloes, sheep, and goats. Tehsil-Level Estimates: • Khanewal & Kabirwala: Together contribute around 60-70% of the district's agricultural output. • Mian Channu: Shares about 25-30%. • Jahanian: Smaller in scale, contributing approximately 10-15%. A GIS-based study by the Punjab Agriculture Department revealed soil nutrient deficiencies, particularly in phosphorus and organic matter, indicating a strong case for investment in soil health, precision agriculture, and high-efficiency irrigation systems. 

________________________________________ 

Industrial Sector 

Khanewal hosts over 263 registered industrial units spanning textiles, sugar, food processing, engineering, and dairy. Key industrial hubs include: • Khanewal Tehsil: Home to textile mills, animal feed plants, Unilever tea operations, and logistics infrastructure. • Mian Channu: Hosts Colony Sugar Mills and textile units. • Kabirwala: Known for Nestle, Hussain Textile, and agro-processing. • Jahanian: Minimal industrial activity but potential exists. Together, these industries are estimated to contribute 2-3% to Punjab's industrial GDP and around 1-1.5% to Pakistan's industrial output. Potential areas for growth include value-added processing, light engineering, and renewable energy solutions for industry.

 ________________________________________ 

Service Sector 

The services sector is diverse and growing, encompassing banking, retail, logistics, education, and public administration. Estimated Tehsil Contributions: • Khanewal Tehsil: ~40–45% of district service GDP; central hub for rail, banks, and retail. • Mian Channu & Kabirwala: ~25–30% each; mid-size towns with active commerce. • Jahanian: ~10%; mainly agriculture-related services. Investment prospects are strong in digital banking, e-commerce, educational institutions, and rural logistics support.

________________________________________ 

Investment Opportunities by Tehsil Tehsil Key Opportunities Khanewal Soil testing labs, logistics hubs, e-services, agri-finance centers Mian Channu Food processing units, irrigation technologies, healthcare facilities Kabirwala Agro-industrial clusters, dairy value chains, storage infrastructure Jahanian Microfinance access, livestock support services, rural development projects

 ________________________________________ 

Conclusion 

Khanewal District holds strategic value in Punjab’s economic framework. Its agricultural dominance, coupled with emerging industrial and service activities, provides a fertile ground for targeted investments. Tehsil-specific strengths should guide policymakers and investors to design localized development strategies that amplify productivity and sustainable growth. 

________________________________________ 

Endnotes / Sources: 

1. Pakistan Bureau of Statistics - https://www.pbs.gov.pk/ 

2. Punjab Development Statistics 2021 - Bureau of Statistics Punjab - https://bos.gop.pk/system/files/PDS2021.pdf 

3. District Profile: Khanewal - Planning & Development Department Punjab - https://pnd.punjab.gov.pk/system/files/Khanewal.pdf 

4. Punjab Agriculture Department - Soil Survey & GIS Study (2024) - http://www.agripunjab.gov.pk/ 

5. Tehsil-Wise Population - Census 2023 Summary Results - https://www.pbs.gov.pk/sites/default/files/population/2023/results/ 

6. Punjab Economic Report by World Bank - https://documents.worldbank.org/en/publication/documents-reports/documentdetail/601241468284937105/Punjab-economic-report