A significant boost to Pakistan’s textile industry is on the horizon as Chinese investment company RUYI Shandong plans to establish textile parks in the country. These parks are anticipated to significantly increase Pakistan’s export capacity, targeting $5 billion in exports once fully operational. The initiative will not only enhance the textile sector but also create numerous job opportunities, contributing to the economic growth of Pakistan.
On Friday, a Memorandum of Understanding (MoU) was signed between Pakistan’s Board of Investment and RUYI Shandong, marking the beginning of this ambitious project. The MoU outlines the construction of the first textile park, which is expected to be inaugurated later this year and completed within three years. This development is a testament to the close economic ties between Pakistan and China.
The textile parks are projected to export products worth $2 billion in the first phase and an additional $5 billion in the second phase. This substantial increase in export capacity is expected to generate between 300,000 to 500,000 local jobs, significantly reducing unemployment and boosting local economies.
The project is part of a broader strategy by RUYI Shandong, which will invite around 100 Chinese textile firms to invest in these facilities. This influx of investment and expertise from Chinese firms is expected to modernize Pakistan’s textile industry, making it more competitive on the global stage.
In line with global trends towards sustainability, the textile parks will operate on zero-carbon automatic technology, primarily utilizing solar energy. This initiative not only addresses environmental concerns but also positions Pakistan as a forward-thinking player in the global textile market, which is increasingly valuing sustainability.
RUYI Shandong is no stranger to large-scale projects in Pakistan, already operating a coal power plant in the Sahiwal district of Punjab. The new textile parks represent a continuation of the company’s commitment to investing in Pakistan’s industrial and economic development.
Prime Minister Shehbaz Sharif, who oversaw the signing ceremony, emphasized the importance of this project. To ensure its success, he formed a special committee led by Deputy Prime Minister and Foreign Minister Ishaq Dar. This committee comprises federal ministers for commerce, investment and privatization, industries and production, a foreign secretary, a representative of the Special Investment Facilitation Council, and Zafaruddin Mehmood.
The inclusion of high-ranking officials underscores the government’s commitment to providing the necessary support and facilitating smooth implementation. Ministers Jam Kamal Khan, Rana Tanveer Hussain, Abdul Aleem Khan, and Awais Ahmed Khan Leghari, along with senior officials, attended the meeting, signaling strong governmental backing for the project.
In parallel to the textile parks initiative, Federal Minister for Petroleum Dr. Musadik Malik invited Chinese enterprises, particularly from Shaanxi province, to invest in Pakistan’s energy and petroleum sectors. Speaking at the China (Shaanxi)-Pakistan Conference for Economic and Trade Cooperation, Malik highlighted opportunities for collaboration in upstream, midstream, and downstream petroleum and coal sectors through investment, joint ventures, and technology transfer.
This initiative is part of the broader China-Pakistan Economic Corridor (CPEC) framework, a $65 billion investment plan under President Xi Jinping’s Belt and Road Initiative (BRI). CPEC aims to develop road, rail, and port infrastructure in Pakistan, facilitating economic growth and strengthening bilateral ties between the two countries.
The establishment of textile parks by RUYI Shandong represents a significant step forward for Pakistan’s textile industry. With substantial investments, job creation, and a focus on sustainable technology, this project is set to transform the sector and boost exports. Supported by the government and in alignment with CPEC, this initiative underscores the enduring partnership between Pakistan and China, promising economic growth and development in the years to come.
