HomeBusinessChinese firms plan major export-oriented investment in Pakistan

Chinese firms plan major export-oriented investment in Pakistan

Federal Minister for Commerce Jam Kamal Khan held a meeting with a Chinese business delegation led by Huwang, Chairman of Challenges Fashion, and Karen Chen, CEO of Challenge Apparel, to discuss investment opportunities in Pakistan’s export-oriented manufacturing sector.

According to an official statement issued on Tuesday, the meeting focused on industrial cooperation, tariff rationalisation, investment facilitation, and broader economic collaboration between Pakistan and China.

The Chinese delegation briefed the minister on the progress of their ongoing manufacturing project in Pakistan and shared plans for large-scale expansion in textiles and apparel production.

Chairman Huwang informed the meeting that the company is establishing a major manufacturing facility in Pakistan under international production standards, with the first phase expected to be completed later this year.

He said the long-term expansion plan could develop into one of the country’s largest industrial operations, potentially generating up to 20,000 jobs and annual exports worth between $400 million and $500 million.

The delegation highlighted Pakistan’s competitive labour force and strategic geographic position linking regional and international trade corridors, expressing confidence in the country’s industrial and export potential.

Commerce Minister Jam Kamal Khan welcomed the growing interest of Chinese companies in Pakistan and said the government is working to improve the investment climate by simplifying regulations and enhancing institutional support for foreign investors.

He stated that Prime Minister-led economic policies are focused on attracting productive investment and promoting export-led growth. The minister added that changing global supply chains and economic diversification trends are creating fresh opportunities for countries like Pakistan.

The meeting also covered regional connectivity, logistics infrastructure, energy access and secure trade corridors. The minister said Pakistan’s location and industrial capacity make it an attractive destination for export-oriented investment and regional economic integration.

Chinese representatives reportedly shared positive operational experiences in Pakistan but noted that international perceptions can sometimes affect investment decisions abroad. Jam Kamal Khan acknowledged the concern and said Pakistan has made significant progress in improving investor protection and the business environment.

The delegation also raised concerns regarding the import of specialised industrial construction materials and inputs not currently manufactured in Pakistan. The commerce minister assured investors that the government is pursuing phased tariff rationalisation to reduce manufacturing costs and improve competitiveness.

He invited the delegation to formally submit details of the required products and tariff classifications so the matter could be reviewed within the government’s tariff reform framework.

The meeting further reviewed progress on land approvals, infrastructure development, utility facilitation and reforms in Special Economic Zone frameworks aimed at improving ease of doing business for industrial investors.