- A Chinese firm called Challenge plans to invest $150 million in an industrial park in Lahore to enhance Pakistan's exports potential.
A Chinese firm called Challenge plans to invest $150 million in an industrial park in Lahore to enhance Pakistan's exports potential.
This industrial park will be located near Lahore’s border with Kasur and will have state-of-the-art fabric units, dyeing facilities and garment manufacturing units to lift exports of sportswear in Pakistan, as reported by Dawn News.
It is important to note that the Chinese firm is already operating as Challenge Apparel in Pakistan since 2017 and has a garment manufacturing unit on Multan Road, near Lahore.
According to Chen Yan, the firm's managing director, the firm earned around $44 million in exports revenue during the last fiscal year.
The Chinese firm also hopes that its existing facility will increase exports to $54 million during this fiscal year. Moreover, Chen Yan also predicts that the company's sportswear exports from Pakistan will grow to $120 million in the first year and then, to $400 million over the next few years, once the Challenge Fashion Industrial Park becomes fully functional.
It is expected that the industrial park will start its operations from July 2022. While the Chinese firm currently hires around 3,000 workers, which includes only 28 Chinese nationals, it hopes to create around 10,000-11,000 new jobs in the market after the industrial plant becomes functional.
Pakistan has also become an ideal location for Chinese companies to relocate their manufacturing units as labor shortages and rising wages have become a huge concern for their home country's textile industry. Moreover, other markets like Vietnam, Bangladesh, India and Myanmar have become too crowded as well.
However, Chen Yan explained that finding the right land with electricity, gas and other utilities is not easy in Pakistan, and it takes longer to secure these utilities before the firm can start its operations.
Hence, as the Pakistani market becomes more attractive to foreign investors, it is important to support these foreign investors will relevant policies and initiatives to increase the country's overall export potential.