Punjab Government Courts Chinese Textile Investment with Attractive Incentives

The Punjab Government has pledged to the All Pakistan Textile Mills Association (APTMA) to provide exceptional incentives, surpassing those offered by other nations, to encourage Chinese investors to relocate their businesses to Pakistan amidst the ongoing trade tensions between the United States and China.

This commitment was conveyed by Chaudhry Shafay Hussain, the Provincial Minister for Industries and Commerce Punjab, during a meeting with a delegation of prominent textile exporters in Lahore. The APTMA delegation included Chairman Kamran Arshad, Chairman APTMA North Asad Shafi, Treasurer Muhammad Qasim, senior members S M Nabeel, Muhammad Ali, Faisal Jawed, Ahsan Shahid, Habib Anwar, Sufian Akhtar, Hussain Ahmed Fazal, Ismail Fareed Sheikh, and Secretary General Mohammad Raza Baqir.

Shafay stated that a mechanism would be developed to guarantee policy continuity, regardless of changes in government.

He voiced strong support for establishing and operating Garments Parks in Punjab based on a ‘Plug and Play Model.’

He elaborated that these industrial parks would feature advanced infrastructure to draw in both international and domestic investors. The Punjab government would also ensure comprehensive security measures for Chinese investors operating within the province. He directed all relevant Punjab departments to finalize their recommendations on all aspects of establishing garments parks, whether in existing industrial zones or on designated sites.

Addressing the current tariff disputes, Shafay expressed optimism that Pakistan would not only attract significant foreign investment from China but also substantially boost its exports through extensive industrial development.

He voiced his hope that APTMA would offer its technical assistance and expertise to the Punjab government in its efforts to attract Chinese investors.

Earlier, APTMA Chairman Kamran Arshad mentioned that APTMA Patron-in-Chief Dr. Gohar Ejaz had proposed the concept of apparel cities in the province, involving the construction of modern industrial zones specifically for garment manufacturing.

The objective is to attract local and foreign investment by capitalizing on competitive advantages such as affordable labor and favorable trade conditions.

Kamran noted that the industrial parks should offer fully equipped, ready-to-use factories for lease, with the goal of significantly increasing Pakistan’s apparel exports and overall economic impact, while also creating substantial employment opportunities to reduce poverty.

Asad Shafi, Chairman North, pointed out that the US textile market is valued at $113 billion, with Pakistan’s share being only $3.9 billion, or 3.5% of US imports. In comparison, Bangladesh accounts for 6.4%, India 9%, Vietnam 14%, and China over 25%. He asserted that if Pakistan could secure even a small portion of the US textile imports, the nation’s textile exports could increase by over $5 billion annually.

Asad suggested that the relocation of Chinese apparel plants could provide substantial benefits to Pakistan, particularly given Pakistan’s lower tariffs in the US compared to competitors like China, Vietnam, and Bangladesh. He proposed organizing a trade show to attract Chinese investment for these industrial parks in Punjab.

Responding to concerns raised by the APTMA Chairman regarding the disruption of manufacturing, import, and export activities due to road blockades in Sindh, the Minister pledged to address the matter at the highest levels with both the Federal and Sindh governments.

Shafay also committed to providing full support for ensuring equitable treatment for both imports and domestic supplies under the Export Finance Scheme (EFS).