Two major Chinese firms are set to establish textile plants in Pakistan, thanks to an agreement facilitated by the Special Investment Facilitation Council (SIFC). Rainbow Industries Ltd. and Shaoxing Chemical Industry will collaborate to enhance Pakistan’s textile sector by producing affordable raw materials.
This venture, which involves millions of dollars in investment, aims to address key challenges faced by the textile industry, including high energy tariffs and external investment hurdles. The Pakistani government is implementing measures to alleviate these issues, such as introducing a 10-year duty-free machinery import scheme and setting up special economic zones for investors.
The significance of this development was highlighted during the “Nine Color & Chem Expo,” a two-day event organized by Rainbow Group and the Punjab Dyes and Chemical Merchants Association. The expo attracted over 300 exhibitors from China, Malaysia, Türkiye, and Iran, and provided a platform for industry stakeholders to discuss sector improvements.
The SIFC-supported Chinese investment is expected to bring advanced technology and foster growth in Pakistan’s textile industry. The All Pakistan Textile Mills Association (Aptma) has also presented demands for reducing interest rates, lowering electricity costs, and removing unreasonable taxes to support the industry’s seamless operation.
Pakistan’s economy heavily relies on textiles, which account for 60% of exports, while energy comprises 30% of imports. The textile sector, employing about 45% of the manufacturing workforce, has significant export potential, projected between $50 billion to $100 billion annually by 2030. However, current challenges, including low cotton yields compared to international standards, impact the industry’s performance.
Efforts to revitalize the textile sector are crucial, as it plays a pivotal role in Pakistan’s economic stability and growth.
