China Pakistan Monitoring Desk
ISLAMABAD: 20 Sep 2024 – The Board of Investment and China’s RUYI Shandong signed a Memorandum of Understanding (MoU) on Friday, marking a major step toward enhancing Pakistan’s textile exports and job creation.Under the agreement, RUYI will establish international-standard textile parks in Sindh and Punjab, aiming to boost exports to $5 billion and create up to 500,000 jobs.
According to the Ministry of Commerce, Pakistan’s textile and apparel exports rose by 0.93 percent to USD16.655 billion during the fiscal year 2023-24 (FY24 July-June), marking a small gain from USD 16.501 billion in the corresponding period of the previous year.
The textile sector had earlier faced economic challenges but showed improvement in the later months. The sector contributed 54.29 percent to Pakistan’s overall exports of USD 30.676 billion from July 2023 to June 2024. However, the share of the textile sector declined from its 59.52 percent share in the same period of the 2022-23 fiscal.
The MoU was signed during a meeting between RUYI Chairman Qiu Yafu and Prime Minister Shehbaz Sharif, following the premier’s recent visit to China. The project is expected to attract investment from around 100 Chinese textile firms.
PM Shehbaz Sharif praised Pakistan’s enduring friendship with China and expressed appreciation for RUYI’s investment. He highlighted the company’s previous role as the first investor in the Sahiwal Coal Power Plant under the China-Pakistan Economic Corridor (CPEC).
According to RUYI’s chairman, the textile parks will operate as zero-carbon, automated facilities powered by solar energy.
In its first phase, the parks aim to increase textile exports by $2 billion, with a goal of reaching $5 billion in the second phase. The project will create between 300,000 and 500,000 jobs.
Construction of the parks is scheduled to begin by the end of this year and will take three years to complete. The company also plans to establish wholesale commodity centres in Karachi and Lahore.
To ensure smooth project implementation, working groups will be set up in Islamabad and Beijing. A special committee, led by Deputy Prime Minister and Foreign Minister Ishaq Dar, will oversee progress on the textile parks.
Green (Zero Emission) textile cities in Lahore and Karachi
The Chairman of China’s RUYI Group, along with his senior management team, visited the Special Investment Facilitation Council (SIFC) in Islamabad on Sept 20, to announce their plans to establish two export-oriented Green (Zero Emission) textile cities in Lahore and Karachi.
Jamil Qureshi, Secretary of SIFC, stated on Friday that the group will collaborate with 25 leading companies from the China Textile Council and China Garments Association. With an anticipated investment of around USD 5 billion, the project is expected to generate significant annual value and boost Pakistan’s textile exports by up to USD 10 billion.
The Chinese textile group is a large-scale Sino-foreign joint venture enterprise with diversified shareholders. It boasts the largest woolen garment and cotton dyeing industry chain in China and consistently contributes to the textile industry through its advanced technology. Currently, the group’s brand matrix includes more than 6,000 stores worldwide, operating in 84 countries and regions, making it the most influential Chinese enterprise in the global fashion field.
This group was the first investor in the Sahiwal Coal Power Plant, a project under the China-Pakistan Economic Corridor (CPEC).
Pakistan in the World – Aug / Sep 2024
