Two major Chinese companies plan to build textile raw material plants in Pakistan with support from the Special Investment Facilitation Council (SIFC). Rainbow Industries Ltd. will partner with Shaoxing Chemical Industry to boost Pakistan’s textile sector.
The project promises millions in investment, aiming to provide affordable materials for local manufacturers. Despite hurdles like high energy costs, the Pakistani government is working on solutions.
This initiative was highlighted at the “Nine Color & Chem Expo,” which featured over 300 exhibitors from China, Malaysia, Türkiye, and Iran, focusing on sector improvements.
The federal government has introduced a 10-year duty-free machinery import scheme and established special economic zones for foreign investors. With SIFC’s support, Chinese investment is expected to modernize the industry.
The All Pakistan Textile Mills Association (Aptma) has presented a charter to enhance industry operations, emphasizing the sector’s importance in export earnings and urging lower interest rates and energy costs.
The textile sector is vital for Pakistan, constituting 60% of exports and 30% of imports. It has the potential to reach $50 billion in exports by 2030. However, cotton yield has stagnated in Pakistan, in contrast to significant improvements in China.
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