China's Challenge Fashion to set up $100 million Special Economic Zone in Pakistan — PM
The development comes as Islamabad seeks to draw more Chinese investment into manufacturing and textiles under the industrial arm of the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar flagship of Beijing's Belt and Road Initiative.
China is Pakistan's largest trading partner, with bilateral trade exceeding $25 billion in recent years, and Chinese companies have already invested heavily in power, transport, infrastructure, and telecoms projects across the country.
''We welcome the establishment of a Special Economic Zone (SEZ) by Challenge Group in Pakistan,' Sharif told a visiting delegation led by Challenge Fashion Chairman Huwang Weiguo.
'Through this SEZ, there will be assistance in technology transfer, skill development and sustainable industrial growth.'
Sharif instructed officials to provide every possible facility to the company and emphasized Pakistan's resolve to promote the industrial component of CPEC.
Since 2014, Challenge Fashion has invested $17 million in Pakistan and is now scaling up with a modern textile industry. The Prime Minister's Office said Sharif also inaugurated the new SEZ after the meeting.
Textiles remain the backbone of Pakistan's economy, accounting for more than 60 percent of exports and employing nearly 40 percent of the industrial workforce.
The sector has faced challenges in recent years due to energy shortages, high costs and slowing global demand, but policymakers hope new investment and technology transfer from China will help boost competitiveness.
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