Chinese Firm to Build Pakistan’s Textile Parks, Creating 0.5 Million Jobs
— September 20, 2024
ISLAMABAD (AIA) In a major development aimed at boosting Pakistan’s textile industry, the Board of Investment (BoI) and Chinese textile giant RUYI Shandong signed a Memorandum of Understanding (MoU) on Friday. The agreement will see RUYI establish international-standard textile parks in Pakistan, with a target to generate $5 billion in exports and create up to 0.5 million jobs. The MoU was formalised during a meeting between Prime Minister Shehbaz Sharif and a nine-member delegation from the RUYI Group, led by Chairman Qiu Yafu. The signing is a direct result of the Prime Minister’s recent visit to China, marking a significant step in strengthening Pakistan-China economic relations. Under the agreement, RUYI will set up textile parks in the provinces of Sindh and Punjab, with an invitation extended to around 100 Chinese textile firms to invest. The parks, which will operate as zero-carbon, automated facilities powered by solar energy, are expected to boost Pakistan’s textile exports by $2 billion in the first phase, eventually reaching $5 billion.
Prime Minister Shehbaz Sharif lauded the Pakistan-China friendship, emphasising the continuous strengthening of bilateral economic ties. He also acknowledged RUYI’s previous investment in Pakistan, recalling the firm’s role in the establishment of the Sahiwal Coal Power Plant under the China-Pakistan Economic Corridor (CPEC).
The parks are expected to start construction by the end of 2024 and will take approximately three years to complete. In addition to the textile parks, RUYI will also establish wholesale commodity centres in Karachi and Lahore. A special committee led by Deputy Prime Minister and Foreign Minister Ishaq Dar, along with federal ministers for commerce, investment, industries, and production, has been formed to facilitate the project. Working groups will also be established in Islamabad and Beijing to pursue further understanding. RUYI Chairman Qiu Yafu praised the “Shehbaz Speed” in executing development projects, expressing optimism for a fast-tracked completion of the textile parks. The chairman emphasised that the company is not just investing but acting as a “friend” of Pakistan. The meeting was attended by several key officials, including Commerce Minister Jam Kamal Khan, Industries and Production Minister Rana Tanveer Hussain, and Privatisation Minister Abdul Aleem Khan.