Islamabad (TDI): Two Chinese firms have announced plans to set up plants in Pakistan to produce raw materials for the textile industry, with support from the Special Investment Facilitation Council (SIFC).
Rainbow Industries Ltd. will partner with Shaoxing Chemical Industry in a joint venture designed to revitalize the local textile sector in Pakistan.
This investment, expected to reach millions of dollars, will focus on providing affordable raw materials for domestic textile manufacturers.
While challenges such as high energy tariffs and external investment hurdles persist, the government is actively working on strategies to address these issues, according to officials.
The urgency of revitalizing the textile industry was highlighted at the recent “Nine Color & Chem Expo,” which was attended by over 300 exhibitors from countries including China, Malaysia, Türkiye, and Iran.
The expo served as a platform for industry stakeholders to discuss potential improvements in the sector.
To further support this initiative, the federal government has introduced a 10-year duty-free machinery import scheme and plans to establish units in special economic zones for foreign investors.
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The anticipated influx of Chinese investment is expected to bring advanced technology and stimulate growth in Pakistan’s textile industry.
Last month, leaders from the All Pakistan Textile Mills Association (APTMA) Central and Southern Zone presented a charter of demands to make sure the industry operates smoothly.
They emphasized the sector’s critical role in the national economy, contributing around 55% to total export earnings.
APTMA Central Vice Chairman Naveed Ahmed urged the government to lower interest rate to 6-7% from the current 19.5%, reduce electricity costs to 8-9 percent per kilowatt-hour (kWh), and eliminate unreasonable taxes on imports, exports, and earnings to improve manufacturing conditions.
Leaders also noted significant challenges faced by export-oriented textile industries in Sindh and Balochistan due to inconsistent gas and electricity supplies.
