Former chairman of Pakistan Cotton Ginners Association (PCGA) Masood A. Majeed has said that Chinese businessmen are evincing interest to invest in the ginning and textile sectors. He urged the government to relocate 200 spinning mills in Punjab, allow leasing of land at $8,900 per acre per annum and provide electricity at 12 US cents per unit.
Majeed, who visited China, told newsmen that Chinese investors have agreed to relocate their yarn-making industry in Punjab, provided infrastructure bottlenecks were removed by the government. He said that although Chinese investors are interested in getting land in developed industrial estates on a yearly lease of $8,900 per acre and power supply at 12 US cents per unit, the government was reluctant to supply electricity at 12 US cents per unit on the plea that it was not feasible. The officials said that the Punjab government intended to establish two dedicated coal-fired power plants in its industrial estates to help resolve the power tariff issue for the Chinese.
He said that a Chinese investor, who got a ginning factory in Jallah Jeem on Bahawalpur Road, had invested $2 million. Sources said: "Chinese want to opt out of basic textile production at the earliest, as lower value addition in fabric and yarn does not cover the ever-increasing cost of production."
Chinese are trying to buy existing textile mills in the country, he said, adding that buying majority shares in Masood Textile Mills Limited was their first success. However, their attempt to lure other textile entrepreneurs has not met with success owing to an expected boom in textile sector in Pakistan, he opined, saying in two to three years, Pakistan will be a force to reckon with in the textile world.