In a significant development for Pakistan’s textile sector, two major Chinese companies have announced plans to establish textile plants in the country. The initiative, backed by the Special Investment Facilitation Council (SIFC), aims to enhance the production of raw materials for Pakistan’s textile industry.
Rainbow Industries Ltd., in collaboration with Shaoxing Chemical Industry, is setting up a joint venture designed to revitalize Pakistan’s textile sector. The project, which will bring millions of dollars in investment, focuses on producing affordable raw materials to support local textile plants, further boosting the industry.
Despite the positive outlook, challenges remain. High energy tariffs and hurdles in attracting foreign investment continue to strain the growth of Pakistan’s textile sector. However, the government is actively working on measures to overcome these issues, particularly to assist the textile plants in maintaining smooth operations.
The sector’s potential was highlighted at the recent “Nine Color & Chem Expo”, organized by Rainbow Group and the Punjab Dyes and Chemical Merchants Association. As Pakistan’s textile sector employs about 45% of the manufacturing labor force and contributes a substantial portion of the country’s exports, any challenges in cotton production also pose risks to the industry.
The two-day event attracted over 300 exhibitors from countries like China, Malaysia, Türkiye, and Iran. Business leaders and industry stakeholders convened to discuss advancements and explore opportunities to further strengthen Pakistan’s textile sector.
To support this growth, the federal government has implemented a 10-year duty-free machinery import scheme and established special economic zones to attract foreign investors. These efforts are expected to introduce advanced technology, ultimately benefiting the textile plants across the country.
Meanwhile, the All Pakistan Textile Mills Association (Aptma) has presented a charter of demands to the government, calling for reductions in interest rates and energy costs to ensure seamless operations for the industry. Aptma leaders emphasized that the textile sector contributes 55% to Pakistan’s total export earnings, underlining its critical role in the national economy.
The country’s cotton yield has remained stagnant over the past 30 years, while other nations, such as China, have seen significant growth in this area. Addressing these issues will be crucial to realizing the full export potential of the industry, which some experts estimate could reach $100 billion by 2030.
Also Read: Pakistan Awards China $2B KKH Contract
With continued support from both domestic and international stakeholders, Pakistan’s textile plants have the potential to play a pivotal role in transforming the country’s economic landscape.
Also Read: Pakistan to Resume ML-1 Talks With China Under CPEC
