Challenge Fashion Private Limited, one of China’s largest textile enterprises, is set to invest $150 million in Punjab to establish a state-of-the-art special economic zone spanning 100 acres, aiming to make it Pakistan’s largest and most advanced textile production facility.
The investment follows an MoU signed between the Bank of Punjab and Challenge Fashion, under the direction of Chief Minister Maryam Nawaz Sharif. The project will have the capacity to produce two to eight million garments per month using six million metres of locally sourced fabric, with exports targeted at leading American brands.
Massive Job Creation and Export Boost
The initiative is expected to generate 18,000 jobs within eight months and 25,000 jobs within five years, while contributing over $100 million annually in exports. The use of domestic raw materials is aimed at boosting the local supply chain and strengthening Pakistan’s textile sector competitiveness.
Strengthening Industrial Ties with China
During a meeting with Chinese Consul-General Zhao Shiren and Challenge Group Chairman Wego Hong, CM Maryam said Punjab plans to shift large-scale Chinese textile factories to the province and fully support foreign investors through pro-investment policies.
She highlighted the Challenge Special Economic Zone as a catalyst for rapid industrial growth and praised Challenge Group’s expertise in recycling plastic waste into high-performance fabrics.
Skills Development for Industrial Growth
Maryam Nawaz emphasised that the Punjab government is investing heavily in technical training through TEVTA to ensure a skilled, market-ready workforce for industries. She noted that the garment city project will benefit from Challenge Group’s technological innovations and global experience.
Chinese Commitment to Advanced Technology
Wego Hong expressed his intent to bring cutting-edge textile machinery and technology surpassing Chinese standards to Punjab, along with innovative practices to transform the local textile market. He credited Punjab’s investor-friendly climate, shaped during Maryam Nawaz’s recent visit to China, for motivating this investment.
Electric Buses to Expand Public Transport
Separately, the chief minister announced that 100 electric buses are being shipped from Yantai Port, China, to serve districts with limited formal transport services, including Mianwali, Okara, Nankana Sahib, Muzaffargarh, Vehari, Pakpattan, and Dera Ghazi Khan.
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