With respect to this label manipulation business, quite a few countries do it. If you'll let me indulge in a bit of equal-equalitis, I'll explain the point of this post towards the end
In the early 90s, I had a friend whose father had a factory in Tirupur, making shirts for various large western brands (IIRC, Lacoste was one). Since there are always a few rejects during the manufacturing process, they would make (say) 110 shirts when the order was for 100 shirts. Many times though, only a few shirts would be rejected, so there would be some perfectly good extras left over. Every now and then, they would get rid of these extra leftovers at near to cost price. One time, he and I were looking at some of the extra stuff and I noticed that one of the shirts had a "Fabrique en Spain" label on it. I asked him if this was actually made in his father's factory and why it was labelled as made in Spain. He confirmed that it was indeed made in his father's factory and the labelling was actually at the behest of the importer. Apparently this shipment was destined for another country (perhaps Singapore or Malaysia) and according to the importer, customers would assume that the item was fake if it said "Made in India". Hence the buyer himself asked them to stick a Made in Spain label. The situation has since vastly improved so there is no longer a need to do this.
Now this situation is vastly different from that in Pakland. The difference is that my friend's dad had several buyers in the west willing to place orders with him because (a) he could deliver the quality that they asked for and (b) he could deliver it cheaper and on time. On the other hand, importers in the west are not willing to import from the Pakis in the first place, due to previous bad experiences (delayed shipments, destroyed shipments etc.) and the bad political situation in Pakland. So labelling the items as "Made in XXX" instead of "Made in Pakistan" is not going to help them if there are no large importers to purchase from them in the first place. And that is the key difference.