ISLAMABAD: Pakistan is witnessing renewed momentum in investment, industrial development and export-led growth, with the Special Investment Facilitation Council (SIFC) playing a key role in accelerating strategic economic projects.
As part of these efforts, financing agreements have been signed for the first phase of the Challenge Special Economic Zone (SEZ) Lahore, marking a significant step towards strengthening the country’s industrial base and attracting investment, state-run Radio Pakistan reported on Monday.
The project is located on the Lahore-Kasur Road in Punjab. Challenge Fashion (Private) Limited (CFPL), a wholly Chinese-owned subsidiary of Shanghai Yuanyi Industry Co Limited, is developing the project.
Spread across 99.45 acres, the Challenge SEZ Lahore is being developed to promote export-oriented manufacturing, support the textile sector, and strengthen Pakistan’s industrial value chain.
The project is expected to attract domestic and foreign investment
The project is expected to attract domestic and foreign investment, create new employment opportunities, facilitate the transfer of modern technology, and enhance the country’s manufacturing and export capacity.
Officials say the development of the special economic zone reflects the government’s broader strategy, under the SIFC framework, to improve the investment climate, expand industrial infrastructure, and drive sustainable economic growth.
#Pakistan is gaining fresh momentum in investment, industrial development and export-oriented projects due to the support of Special Investment Facilitation Council @sifcpakistan @OfficialDGISPR @Financegovpk #RadioPakistan #News https://t.co/6LBWmP7bbe pic.twitter.com/G2l3bl2lji
— Radio Pakistan (@RadioPakistan) August 3, 2026
The Special Investment Facilitation Council (SIFC) is a high-level civil-military body established by the Government of Pakistan in June 2023 to accelerate investment, remove bureaucratic hurdles, and coordinate major economic projects.
Its primary purpose is to make it easier for domestic and foreign investors to do business in Pakistan by bringing key government institutions together under a single decision-making framework.
Promotion of private investment vital for economic growth: PM
Earlier, Prime Minister Shehbaz Sharif emphasised that promoting private investment is essential for Pakistan’s sustainable economic growth and directed authorities to accelerate efforts to establish a Private Equity Fund to attract investment and support businesses.
Chairing a meeting in Islamabad on the promotion of private equity as a driver of investment, the prime minister called for a comprehensive strategy to establish the fund at the earliest, with a particular focus on facilitating financing for small and medium-sized enterprises (SMEs).
Prime Minister @CMShehbaz says promotion of private investment is indispensable for Pakistan’s economic growth@PakPMO @Financegovpk @investinpak #RadioPakistan #PakistanEconomy #Investment https://t.co/erLzLDrJzI pic.twitter.com/25ETFqfsIq
— Radio Pakistan (@RadioPakistan) August 3, 2026
Shehbaz Sharif also instructed officials to prepare a detailed roadmap for the development of Pakistan’s public equity market alongside the proposed Private Equity Fund.
He said these initiatives would improve access to investment capital, encourage private sector participation, and help attract greater foreign investment.
The prime minister said Private Equity Funds could play a vital role in stimulating investment, expanding businesses, and creating employment opportunities across the country.
He noted that key sectors, including minerals, agriculture, livestock, energy, and information technology, have significant potential to drive Pakistan’s economic growth. He added that a stronger public equity market could provide an important source of financing for investment in these strategic sectors.
Highlighting the need to diversify sources of financing, Shehbaz Sharif said investment by the banking sector remains limited, making the promotion of alternative investment channels increasingly important.
