KARACHI: Pakistan is seeking to attract more Chinese export-oriented manufacturing as a Chinese apparel company plans a major expansion in the country targeting up to $500 million in annual exports, according to a commerce ministry statement released on Wednesday.
The development comes as Pakistan pushes to position itself as a regional manufacturing and export hub amid shifting global supply chains and growing Chinese interest in lower-cost production bases abroad. Textile and apparel products remain Pakistan’s largest export category and a key source of foreign exchange for the cash-strapped South Asian economy.
Against this backdrop, Federal Commerce Minister Jam Kamal Khan met a Chinese business delegation from Challenge Fashion Group, led by Chairman Huwang Weiguo and Karen Chen, a senior executive associated with the group’s Pakistan operations.
According to the statement, the Chinese company is establishing a major manufacturing facility in Pakistan under international production standards, with the first phase expected to be completed later this year.
“The long-term expansion plan envisions one of the largest industrial operations of its kind, with the potential to create up to 20,000 employment opportunities and generate annual exports of approximately $400–500 million,” the ministry said, citing the Chinese delegation.
The statement said the two sides discussed investment opportunities in textiles, apparel and other sectors, as well as industrial facilitation, logistics, energy access and tariff rationalization.
“The government is actively working to improve the investment climate, simplify regulatory procedures, and facilitate foreign investors through coordinated institutional support,” the minister said, according to the statement.
He said changing global supply chains and economic conditions were creating new opportunities for countries such as Pakistan.
“Pakistan’s strategic location, industrial potential, and regional connectivity make it an increasingly attractive destination for export-oriented investment,” he said.
Pakistan has increasingly sought to attract Chinese industrial relocation under broader economic cooperation initiatives with Beijing, including projects linked to the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar infrastructure and connectivity program.
The Chinese delegation highlighted Pakistan’s “competitive workforce” and strategic geographic position linking regional and international trade routes, the statement said.
The investors also raised concerns related to specialized industrial construction materials and manufacturing inputs not currently produced locally, seeking facilitation for imports required to meet international production and safety standards.
Khan said Pakistan was undertaking a phased tariff rationalization process aimed at improving industrial competitiveness and reducing costs for manufacturers.
The meeting also reviewed land approvals, infrastructure development, utility access and reforms related to Pakistan’s Special Economic Zones, the ministry said.
