LAHORE, May 20 (INP): Challenge Fashion (Pvt) Ltd, a Chinese textile company, has acquired 100 acres of land in Lahore, Pakistan’s emerging economic hub, in an aim to develop a Special Economic Zone (SEZ) for a textile park.
The company plans to commence the construction of an export-based garment factory after completing a 3-kilometer access road from the main highway to the proposed site of a textile park.
“The factory infrastructure is expected to be built within 12 months,” stated an official from Challenge Fashion in an interview with Gwadar Pro.
The garment factory is expected to help Pakistan earn 500 million US dollars in foreign exchange and create 30,000 jobs each year. Challenge Fashion (Pvt.) Ltd plans to invest 150 million US dollars over the next 3-5 years.
If everything progresses as planned, it is expected to attract an additional investment of 100 million US dollars in supporting industries.
The official mentioned that acquiring high-quality fabrics is a significant challenge. Currently, more than 80% of the surface accessories are imported, which substantially hinders the company’s pace of expanding its industrial scale.
“The company plans to develop the park into the most innovative and sustainable textile industry base in South Asia, showcasing China’s park design concept and construction standards to Pakistani counterparts.
This will promote the most efficient and environmentally friendly automated fabric production equipment and garment production systems, and spread modern production management science,” the official added.
The official also stated that the establishment of a supply chain cluster would help improve Pakistan’s labor structure and management.
“We hope to demonstrate China’s industrial park standards to our Pakistani counterparts by creating a Chinese-regulated industrial park project,” the official said.
“We aim to enable Chinese enterprises interested in an overseas layout to see Pakistan’s investment potential and also provide project landing sites for SMEs so that they can fully benefit from the preferential investment policies provided by the Pakistani government,” the official asserted.
The official further explained that “the tariff-free treatment of textiles exported to the EU, combined with China’s Free Trade Agreement, can guarantee the price competitiveness of Pakistani products.
Pakistani fabrics exported to Africa or Jordan can enter North America without tariffs, and the route is much shorter than from East Asia.”
INP/javed
