Chinese Firms To Invest In Pakistan’s Textile Raw Material Production
Two major Chinese companies have announced plans to establish manufacturing plants in Pakistan, focusing on raw materials for the textile industry, with support from the Special Investment Facilitation Council (SIFC). Rainbow Industries Limited, in partnership with Shaoxing Chemical Industry, is spearheading a joint venture aimed at revitalizing Pakistan’s textile sector.
These projects are expected to attract millions of dollars in investment, with the primary goal of producing affordable raw materials for the local textile industry. This development comes at a critical time as Pakistan’s textile sector grapples with challenges such as rising energy tariffs, which have impacted foreign investment.
In response to these issues and to support the industry’s recovery, Rainbow Group, along with the Punjab Dyes and Chemical Merchants Association, recently organized the “Nine Color and Chem Expo,” a two-day exhibition. The event drew over 300 exhibitors from China, Malaysia, Turkey, and Iran, offering a platform for industry leaders and stakeholders to explore opportunities for growth and improvement.
To further incentivize foreign investment, the federal government has introduced several measures, including a 10-year duty-free period for machinery imports and the establishment of production units in special economic zones. These initiatives, along with SIFC’s backing of Chinese investments, are expected to facilitate technology transfer and drive the advancement of Pakistan’s textile industry.
The collaboration between Pakistani and Chinese companies, coupled with government support, marks a potential turning point for the country’s textile sector.
