Prime Minister Shehbaz Sharif on Friday inaugurated a Special Economic Zone (SEZ) established by Chinese textile giant Challenge Fashion Private Limited, marking a major milestone in Pakistan’s industrial and export growth. The project, involving a $100 million investment over the next five years, is projected to generate $400 million in exports.
During the inauguration ceremony, PM Shehbaz highlighted that the initiative would facilitate technology transfer, skill development, and sustainable industrial growth, while strengthening the industrial pillar of the China-Pakistan Economic Corridor (CPEC) Phase II.
Pakistan Strengthens Textile Ties with Chinese Investors
He assured the Chinese delegation, led by Chairman Huwang Weiguo, of the government’s full support in establishing the new zone. “This project reflects the confidence of Chinese investors in Pakistan’s economy and will help take bilateral ties to new heights,” the Prime Minister said.
The Prime Minister also announced that a China-Pakistan Business-to-Business Conference will soon be held in China to further expand private sector cooperation between the two countries.
Chairman Huwang Weiguo expressed gratitude for Pakistan’s hospitality and reiterated his company’s commitment to building a modern, technology-driven textile industry in Pakistan. Challenge Fashion has been present in Pakistan since 2014, with prior investments of $17 million, and now aims to accelerate industrialisation under CPEC.
Federal ministers including Ahsan Iqbal, Jam Kamal, Attaullah Tarar, Ali Pervez Malik, Sardar Awais Ahmad Leghari, and Special Assistant to the PM Tariq Fatemi attended the ceremony, underscoring the project’s national significance.
The establishment of the SEZ is expected to boost exports, job creation, and foreign investment in Pakistan’s textile sector, while further cementing Pakistan-China economic cooperation.
