Chinese textile units have shown interest in relocating to Pakistan. The Chinese textile industry is looking to relocate into Pakistan because of rising cost of doing business in their country.
Here is how Foreign Countries Vice President Chen Weiming with Tianjin Peoples Association for Friendship explained the situation.
“As the world economy is developing in the face of new challenges and choices, the company strives to develop import and export trade through the adjustment of industrial structure. Their aim is multidisciplinary, multiple-format, diversified development of modern textile enterprises in the future.”
Chen shared his views while leading a delegation of the association at a meeting with All Pakistan Textile Mills Association (APTMA).
Pakistan’s Warm Welcome to Chinese Textile Units
On this occasion, APTMA Vice President Zahid Mazhar invited Chinese investors to utilize the facilities provided by Pakistan. The Vice President said that the Chinese textile units must take benefit of the lenient trade and investment policies set by the government of Pakistan.
Zahid Mazhar also said that the government was facilitating the textile industry by offering deregulated market-driven opportunities to the investors. He further stated that the government was focused on creating a facilitating environment for the investors by improving the infrastructure and capacity among other incentives like duty-free import of machinery, equipment, and raw material.
Equal Treatment to All Investors
The Vice President of APTMA also said that the government was making an environment where it would give equal emphasis to local and foreign investors. He stated that the government had allowed 100% foreign equity investment without any government sanctions and letting the businesses remit the benefits.
Mr. Mazhar also pointed out the cost of doing business in Pakistan as lower than in China, advocating that as one of the biggest advantages to the Chinese textile unit investors.
Export Led Growth Package
The government has recently announced growth-led package with zero-rated sales tax for the textile units. The Vice President expressed hope that the package with lower overall tax would further incentivize the investors to invest in the textile industry of Pakistan.
Pakistan textile industry mainly deals in six sectors including spinning, weaving, processing, printing, garment manufacturing, and filament yarn production. Pakistan primarily uses cotton as its raw material for textile production.
The textile production of Pakistan is very diverse. There are other fibers produced as well including jute, wool, art silk, filament yarn, and synthetic fiber.
Despite the facilitations announced by Pakistan, the textile industry in the country is facing multiple crises. The cost of production has increased over the period terribly impacting export competitiveness. The shortage of energy is another issue making it difficult to produce on a larger scale. Some experts also believe that lack of Research and Development has stagnated the textile industry of Pakistan.
Let us hope that the Chinese textile units can find a conducive working environment while the government can smoothly tackle these challenges.