Chinese textile conglomerate Challenge Fashion (Pvt.) Ltd is planning to invest 150 million US dollars in Pakistan for the constructions of a state of the art textile park for the production of high quality fabric.
Challenge Fashion’s CEO, Karen Chen, revealed their plans to construct a textile
park in Lahore spanning 550 acres. The construction is set to commence on
January 24, with partial operation expected by October 2024.
Once fully completed, the textile park is projected to earn Pakistan 500 million US
dollars in foreign exchange and generate 30,000 jobs annually. Moreover, it is
anticipated to attract an additional investment of US$100 million in supporting
industries.
Karen Chen highlighted the challenges in acquiring high-quality fabrics, as
currently, over 80% of surface accessories are imported, hindering the company’s
industrial expansion. To overcome this, the company’s chairman, Huang Weiguo,
decided to invest in Lahore, acquiring 550 acres of land and obtaining a special
economic zone qualification from the Pakistani government, making it the only
wholly foreign-owned special economic zone approved.
The company aims to develop the park into South Asia’s most innovative and
sustainable textile industry base, showcasing China’s park design concepts and
construction standards. They plan to promote efficient and environmentally
friendly automated fabric production equipment and garment production systems
while advocating modern production management science.
The company hopes to demonstrate China’s industrial park standards to the
Pakistani counterparts by creating a Chinese-regulated industrial park project.
Karen Chen emphasized that the tariff-free treatment of textiles exported to the
EU, combined with China’s Free Trade Agreement, will ensure the price advantage
of Pakistani products. Fabrics exported to Africa or Jordan from Pakistan can
enter North America without tariffs, with a shorter route compared to East Asia.
Challenge Fashion remains committed to promoting Pakistan’s textile exports.
