Prime Minister Shehbaz Sharif has inaugurated a Special Economic Zone to be developed by Chinese garments manufacturer Challenge Fashion Private Limited, marking a major step towards boosting Pakistan’s textile production capacity and exports. With a planned investment of $100 million over the next five years, the Zone is expected to generate $400 million in export revenue, strengthen industrial collaboration, and accelerate technology adoption in the local manufacturing sector. Challenge Fashion, which has been operating in Pakistan since 2014 and has already invested $17 million, aims to set up advanced textile manufacturing facilities equipped with modern machinery and processes to meet international standards.
Ahead of the groundbreaking ceremony, Prime Minister Shehbaz met with the Challenge Fashion delegation led by Chairman Huwang Weiguo. He welcomed the establishment of the Zone, highlighting its role in enabling technology transfer, improving workforce skills, and fostering sustainable industrial growth. He instructed relevant authorities to ensure smooth facilitation for the project, emphasizing the government’s commitment to enhancing the industrial dimension of the China-Pakistan Economic Corridor and benefiting from China’s technological advancements in the textile industry. He underscored that initiatives of this nature strengthen Pakistan-China economic ties and contribute to a more competitive manufacturing ecosystem in Pakistan.
The prime minister expressed confidence that the Special Economic Zone would serve as a model for integrating modern textile technologies with local production capabilities. He encouraged more Chinese companies to invest in Pakistan’s industrial landscape and announced that a China-Pakistan Business-to-Business Conference would soon be organized in China to expand opportunities for private sector partnerships. Chairman Huwang Weiguo thanked Prime Minister Shehbaz for the support and hospitality extended to his company, reiterating Challenge Fashion’s long-term commitment to building a technologically advanced textile base in Pakistan. He shared that the upcoming facilities would incorporate cutting-edge production lines designed to optimize efficiency and meet growing global demand for high-quality garments.
Federal ministers Ahsan Iqbal, Jam Kamal, Attaullah Tarar, Ali Pervez Malik, and Sardar Awais Ahmad Leghari, along with Special Assistant to the Prime Minister Tariq Fatemi and senior officials, attended the event. The project represents a significant boost for Pakistan’s industrial sector, with the infusion of both investment capital and modern production technology positioning the country as a competitive player in global textile markets.
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