$100M Special Economic Zone by China’s Challenge Fashion in Pakistan
China’s Challenge Fashion Group is set to establish a Special Economic Zone (SEZ) in Pakistan, bringing in $100 million worth of investment over the next five years. The project is expected to generate $400 million in exports, according to the Prime Minister’s Office.
The initiative is part of efforts to attract greater Chinese investment in Pakistan’s manufacturing and textile industries under the China-Pakistan Economic Corridor (CPEC), a key component of China’s Belt and Road Initiative. China remains Pakistan’s largest trading partner, with bilateral trade crossing $25 billion, and Chinese firms have already contributed significantly to power, transport, infrastructure, and telecom sectors.
P.c. Arab News Pakistan
Welcoming the development, Prime Minister Shehbaz Sharif assured full support to the visiting delegation led by Challenge Fashion Chairman Huwang Weiguo. He emphasized that the SEZ would encourage technology transfer, enhance skills, and contribute to sustainable industrial growth in Pakistan.
Since 2014, Challenge Fashion has invested $17 million in Pakistan and is now expanding into a modern textile hub. Following his meeting with the company’s leadership, the Prime Minister inaugurated the SEZ.
Textiles continue to be the backbone of Pakistan’s economy, contributing over 60% of national exports and employing nearly 40% of the industrial workforce. Despite challenges such as energy shortages and rising costs, the government hopes that new Chinese investment and advanced technology will strengthen competitiveness and drive growth in the sector.