China to Set Up Pakistan’s Largest Textile Unit in Punjab

Fri Aug 15 2025
icon-facebook icon-twitter icon-whatsapp

Key points

  • Punjab to house 100-acre special zone for $150m investment
  • 25,000 people will get jobs in next five years
  • We want to shift China’s large textile factories and institutions to Punjab: Maryam

 ISLAMABAD: In a landmark move to boost industrial growth, one of China’s leading textile groups will invest $150 million to establish Pakistan’s largest advanced textile unit in Punjab, creating 25,000 jobs and driving major exports through a new 100-acre special economic zone.

Under a memorandum of understanding (MoU), the group will produce up to eight million garment items per month in Punjab by utilising six million metres of fabric, according to The Express Tribune.

According to an official statement, a state-of-the-art special economic zone will be established on 100 acres and Pakistan’s largest advanced textile industry will be set.

The Chinese group will export garments through well-known American brands.

 25,000 jobs in five years

Through the initiative, 18,000 people will get jobs in next eight months and 25,000 in five years.

The group will obtain raw material for garment production from Pakistan and the project is expected to generate more than $100 million in annual exports.

During a meeting with Punjab Chief Minister Maryam Nawaz Sharif along with Chinese Consul General Zhao Shiren, Challenge Group Chairman Wego Hong appreciated her investment-friendly policies.

Matters pertaining to the promotion of the textile industry and investment in Punjab were discussed in the meeting.

Complete support

The chief minister said, “Pakistan aims to enhance the trade and business partnership to greater heights in the next few years. We are establishing a state-of-the-art and magnificent garment city in Punjab, and will benefit from the expertise and experience of Challenge Group. The Punjab government intends to work with the Challenge Group for the success of garment city in Punjab. The Punjab government will provide complete support for the promotion of investment in the province.”

She outlined, “We want to shift China’s large textile factories and institutions to Punjab. The ‘Challenge Special Economic Zone’ will play an important role for brisk industrial development of Punjab.” She said plastic waste was being recycled and used in high-performance fabrics under a modern textile project.

The chief minister said, “The Punjab government is investing heavily for the promotion of technical skills among the youth through TEVTA (Technical Education and Vocational Training Authority). We want to provide market-based human resources to cater to the needs of industrial enterprises.”

Pro-investment policies

Wego Hong said his group wanted to bring better textile machinery and technology than China to Punjab. He expressed the desire to create innovation in the textile market of the province. He said the policies and vision of Chief Minister Maryam Nawaz were encouraging for the promotion of foreign investment in Punjab.

He said the pro-investment policies had motivated him to visit the province. He added that recent investment of China in Punjab depicted the investment-friendly vision of the chief minister shared during her last visit to China, according to The Express Tribune.

100 electric buses

Chief Minister Maryam Nawaz also announced on Wednesday that another fleet of 100 electric buses is en route from China to Pakistan as part of an effort to expand public transport in districts of Punjab that have long lacked formal services.

She stated in a social media post that the buses were being loaded at Yantai Port in China, and were expected to set sail at night. The new fleet will serve Mianwali, Okara, Nankana Sahib, Muzaffargarh, Vehari, Pakpattan and Dera Ghazi Khan.

icon-facebook icon-twitter icon-whatsapp