China’s Challenge Fashion to set up $100 million Special Economic Zone in Pakistan — PM

Prime Minister Shehbaz Sharif (fourth right) inaugurates Challenge Special Economic Zone, in Islamabad, Pakistan, on August 15, 2025. (PID)
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Updated 15 August 2025
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China’s Challenge Fashion to set up $100 million Special Economic Zone in Pakistan — PM

  • Prime minister welcomes new Chinese investment in textiles, pledges full support
  • Project is expected to generate $400 million in exports over five years

KARACHI: China’s Challenge Fashion Group will establish a Special Economic Zone (SEZ) in Pakistan with planned investments of $100 million over five years, expected to generate $400 million in exports, Prime Minister Shehbaz Sharif’s office said on Friday.

The development comes as Islamabad seeks to draw more Chinese investment into manufacturing and textiles under the industrial arm of the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar flagship of Beijing’s Belt and Road Initiative.

China is Pakistan’s largest trading partner, with bilateral trade exceeding $25 billion in recent years, and Chinese companies have already invested heavily in power, transport, infrastructure, and telecoms projects across the country.

““We welcome the establishment of a Special Economic Zone (SEZ) by Challenge Group in Pakistan,” Sharif told a visiting delegation led by Challenge Fashion Chairman Huwang Weiguo. 

“Through this SEZ, there will be assistance in technology transfer, skill development and sustainable industrial growth.”

Sharif instructed officials to provide every possible facility to the company and emphasized Pakistan’s resolve to promote the industrial component of CPEC.

Since 2014, Challenge Fashion has invested $17 million in Pakistan and is now scaling up with a modern textile industry. The Prime Minister’s Office said Sharif also inaugurated the new SEZ after the meeting.

Textiles remain the backbone of Pakistan’s economy, accounting for more than 60 percent of exports and employing nearly 40 percent of the industrial workforce.

The sector has faced challenges in recent years due to energy shortages, high costs and slowing global demand, but policymakers hope new investment and technology transfer from China will help boost competitiveness.


Pakistan’s president defends ongoing strikes in Afghanistan, urges Kabul to dismantle militants

Updated 02 March 2026
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Pakistan’s president defends ongoing strikes in Afghanistan, urges Kabul to dismantle militants

  • Afghanistan on Thursday launched attacks in retaliation for Pakistani airstrikes the previous Sunday
  • Pakistan’s military says it is only targeting Afghan military installations to avoid civilian casualties

ISLAMABAD: Pakistan’s president on Monday defended his country’s ongoing military strikes in neighboring Afghanistan, saying Islamabad tried all forms of diplomacy before targeting militants operating from Afghan territory, and called on the Taliban government in Kabul to disarm groups responsible for attacks in Pakistan.

Pakistan earlier said it is in “open war” with Afghanistan, alarming the international community. The border area remains a stronghold for militant organizations including Al-Qaeda and the Daesh (Islamic State) group.

“(The Afghan Taliban) must choose to dismantle the terror groups that survive on conflict and its war economy,” Asif Ali Zardari said during a speech to lawmakers, adding that “no state accepts serial attacks on its soil.”

Afghanistan on Thursday launched attacks in retaliation for Pakistani airstrikes the previous Sunday. Since then, Pakistan has carried out operations along the border, with Information Minister Attaullah Tarar claiming the killing of 435 Afghan forces and the capture of 31 Afghan positions.

Kabul has denied such claims.

In Afghanistan, the deputy government spokesman Hamdullah Fitrat said Pakistan’s military fired mortar shells at a refugee camp in eastern Kunar province, killing three children and injuring three others.

Afghanistan’s defense ministry said Afghan forces carried out strikes targeting a Pakistani military facility near Paktia province, causing “substantial losses and heavy casualties.”

Pakistan’s military did not respond to questions. It has said Pakistan is only targeting Afghan military installations to avoid civilian casualties.

Pakistan has witnessed a surge of violence in recent months and blames it on the outlawed Pakistani Taliban, known as Tehreek-e-Taliban Pakistan or TTP. It operates both inside Pakistan and from Afghan territory.
Islamabad accuses Afghanistan’s Taliban government of providing safe havens for the TTP, which Kabul denies.

The latest cross-border fighting ended a ceasefire brokered by Qatar and Turkiye in October. The two sides failed to reach a permanent agreement during talks in Istanbul.

Zardari reiterated Pakistan’s call for talks, saying, “We have never walked away from dialogue.”

The Pakistani leader again accused Afghanistan of acting as a proxy for India by sheltering militant groups.

“Stop being used by another country as a battlefield for their ambitions,” he said.

Zardari cited a recent report from the United Nations Security Council’s monitoring team that described the presence of militant groups in Afghanistan as an extra-regional threat.