Chinese Firms to Establish Manufacturing Plants in Pakistan's Textile Sector

Major Chinese investments set to enhance Pakistan’s textile industry through new manufacturing ventures and joint partnerships.

P.c. China Pakistan Economic Corridor

Chinese Firms to Establish Manufacturing Plants in Pakistan's Textile Sector


LAHORE – In a significant boost to Pakistan’s textile industry, two prominent Chinese companies have announced plans to establish manufacturing plants in the country. One company will operate independently, while the other will form a joint venture with a local firm to produce raw materials for the textile sector.

P.c. China Pakistan Economic Corridor

The projects, led by Napa Chemicals and Shao Shing Chemicals, are set to inject millions of dollars into the local industry. The investment aims to provide affordable raw materials and introduce advanced technology to Pakistan’s dyes and chemicals market. Abdul Rahim Chughtai, convener of the 9th Colour and Chemicals Expo 2024 and president of the Punjab Dyes and Chemicals Merchants Association, confirmed that Rainbow Industries will partner with Shao Shing Chemicals in this venture.

The federal government has supported this initiative by offering a 10-year tax holiday, duty-free machinery imports, and establishment of units in Special Economic Zones. Despite these incentives, challenges such as law and order and high energy tariffs remain barriers to foreign investment.

The recent 9th Colour and Chemicals Expo showcased over 300 exhibitors from the dyes, chemicals, and related sectors, including international companies from China, Malaysia, Turkey, and Iran. The event, organized by Event and Conference International, Rainbow Group, and the Punjab Dyes and Chemicals Merchants Association, facilitated technology transfer, product updates, and new contracts, enhancing collaboration among industry professionals and stakeholders. Notably, Mr. Shi Xianping, Chairman of the China Dyestuffs Industry Association, participated in the event, underscoring the growing ties between the two nations.