Chinese group to set up textile parks in Pakistan, aiming for $5 billion boost in exports

ISLAMABAD: A major Chinese business group unveiled its plan to set up textile parks in two Pakistani provinces during a meeting with Prime Minister Shehbaz Sharif on Friday, saying these “international-standard” facilities will help generate up to $5 billion in textile exports from the country.
China’s Ruyi Shandong Group, one of the largest textile and clothing manufacturers, has expanded globally over the past decade through acquisitions and investments. It has also benefited from the multibillion-dollar China-Pakistan Economic Corridor (CPEC) in the past by investing in a coal power plant in the country.
The group’s chairman, Qiu Yafu, held a meeting with the prime minister to discuss the investment proposal and highlight its details.
“Ruyi Group will establish international-standard textile parks in Sindh and Punjab provinces, inviting around 100 major Chinese textile industries to invest,” he said in his briefing, according to an official statement circulated after the meeting.
“The primary focus of these textile parks is to boost Pakistan’s textile exports and make Pakistan a global hub for textiles and garments,” he continued.
The Chinese businessman added these parks will utilize solar energy, operate with zero carbon emissions and employ modern automated technology.
“In the first phase, these parks are expected to generate $2 billion in exports, with $5 billion anticipated in the second phase,” he noted. “The parks will create employment opportunities for 300,000 to 500,000 local individuals.”
According to the briefing, the foundation stone for the textile parks will be laid by the end of the year, with completion expected within three years.
Ruyi Group will also establish wholesale commodity centers in both Karachi and Lahore.
It was decided during the meeting to establish working groups in Islamabad and Beijing to advance matters between Pakistan and the Chinese business group.
“China has always stood by Pakistan in difficult times,” the prime minister said during the meeting. “Economic relations between China and Pakistan are growing stronger with each passing day.”
He also formed a special committee headed by Deputy Prime Minister Ishaq Dar to oversee the initiative.
A memorandum of understanding was signed between Pakistan’s Board of Investment and Ruyi Shandong Group regarding the establishment of the parks, with the prime minister in attendance.