Chinese firms ready to transfer production, tech expertise to Punjab
LAHORE: Punjab has offered itself as a potential manufacturing and export hub for China, with the provincial government highlighting its investment-friendly environment, strategic location, industrial base and incentives for Chinese investors.
A Business and Investment Conference was held in Guiyang in collaboration with the government of Punjab and the government of China’s Guizhou province. Provincial Minister for Agriculture Ashiq Kirmani, representing Chief Minister Maryam Nawaz Sharif, also attended the Foreign Economic and Trade Corporation Symposium.
Senior officials of leading Chinese companies and Chinese investors participated in the conference. Leading Chinese business representatives were briefed on Punjab’s investor-friendly environment in line with Chief Minister Maryam Nawaz Sharif’s vision.
Chinese investors were invited to visit various Special Economic Zones established across Punjab. Chinese companies expressed keen interest in transferring production facilities and technical expertise to the province.
According to a message received here, a detailed briefing on Punjab’s economic and investment potential was given at the conference. Provincial Minister for Agriculture and Irrigation Ashiq Kirmani highlighted the province’s economic strengths and investment opportunities, while the Punjab government apprised Chinese investors of incentives being offered to attract and facilitate Chinese investment.
During the conference, the provincial minister also held productive meetings with Chinese companies and business delegations. Punjab’s investment potential was presented on the instructions of Chief Minister Maryam Nawaz Sharif.
Kirmani said Punjab, with a GDP of USD 253 billion, held a prominent position in Pakistan’s economy. The province had a huge consumer market of 128 million people and more than 40,000 manufacturing industrial units.
He said Punjab had Pakistan’s largest textile and engineering base, while Sialkot and Faisalabad had emerged as global export clusters. Punjab produced 65 per cent of the country’s food requirements from its 71 million acres of cultivated area and had vast potential in livestock and the wider agro-ecosystem.
The minister said Punjab was also a gateway to CPEC, supported by a network of motorways and other communication infrastructure. Owing to its strategic geographical location, Punjab had the potential to emerge as an ideal regional trade hub for the Gulf and eastern Africa and could serve as a major trade route to China, Iran and India.
He said Punjab had Pakistan’s largest road network, comprising around 90,000 kilometres of roads. The province also offered the potential for easier and faster access to China through a distance of only 653 kilometres.
Kirmani said Punjab had clear potential to become the best manufacturing hub for China compared to other neighbouring regions. The province had a workforce of 48 million young people, making it home to one of South Asia’s best young workforces.
He said the PIVOT (Punjab Innovation for Value Opportunity and Transformation) programme was training more than 850,000 workers, while Punjab’s literacy rate of 68 per cent was the highest in Pakistan, further strengthening its position among the provinces.
The minister said Punjab’s 10 Special Economic Zones offered one-time duty-free facilities and income tax exemptions for up to 10 years. The SEZs also offered 30-year land leases and duty-free imports of machinery, equipment and materials.
A special land lease policy had been introduced for Chinese companies in Punjab’s Special Economic Zones. Companies using more than 50 per cent raw material sourced from Punjab would be eligible for a further 20 per cent reduction in lease rates.
He said the Government of Punjab would extend full support throughout the investment lifecycle. An Investor Aftercare Programme, China Desk, Investor Facilitation Centre, Special Economic Zones, B2B matchmaking and one-window operations had been introduced to facilitate investors.
Kirmani said a Special Protection Unit, bullet-proof vehicles, digital surveillance and a Punjab-China Joint Security System had been introduced to ensure the security of Chinese nationals and investors in the province.
He said the PIVOT programme had the potential to create more than 162,000 jobs and generate up to USD 6.8 billion in economic activity. More than 850,000 workers were being trained under the programme, while private investment of USD 3.2 billion was expected to be attracted.
The PIVOT programme would promote value addition and expand the export-value chain, ensure global standards for products and establish cluster-based infrastructure across Punjab, he added.
The provincial minister said Rs 35 billion had been allocated for establishing 1,000 new manufacturing units in Punjab. Private investment of Rs80 billion was expected to create another 40,000 employment opportunities.
He said Rs 20 billion had been earmarked under the Cluster Infrastructure Development Programme for roads, water supply, sanitation and other facilities.
Kirmani said 25 departments were providing 300 business services under Punjab’s e-business services and e-commerce initiatives.
Value-addition programmes had also been introduced in agriculture, aquaculture, livestock and tourism. He said the provincial government had introduced an effective regulatory framework to ensure a conducive and hassle-free business environment. As many as 33 Chinese enterprises were already operating in Faisalabad in collaboration with local partners.
Copyright Business Recorder, 2026