Chinese textile units interested in relocating to Pakistan

Published: April 15, 2017
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KARACHI: Tianjin Peoples Association for Friendship with Foreign Countries Vice President Chen Weiming has said that high cost of doing business and environmental challenges in China have made Pakistan an ideal destination for the relocation of Chinese textile industry.

“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,” he said.

A tale of two textile cities — one in China and one in Pakista

“Their aim is multidisciplinary, multiple-format, diversified development of modern textile enterprises in the future.”

Chen, while heading a delegation of the association, made the remarks during a meeting with members of the All Pakistan Textile Mills Association (Aptma) on Friday. Tianjin is a major port city located in northeastern China.

Aptma Senior Vice Chairman Zahid Mazhar invited Chinese investors to take advantage of the liberal trade and investment policies in Pakistan by entering into joint ventures with Pakistani entrepreneurs in the textile industry. He welcomed Chinese interest in relocating the industry to Pakistan.

Highlighting the trade and investment policies, Mazhar said the government was an advocate of open and deregulated market-driven economy and was creating an enabling environment by investing heavily in infrastructure and capacity building with special emphasis on attracting foreign investment and duty-free import of machinery, equipment and raw material.

Briefing on the environment for foreign investment, he said the government had allowed foreign direct investment in all sectors, treated local and foreign investment equally, permitted 100% foreign equity investment, required no government sanction and allowed remittance of royalty, technical and franchise fee, capital, profits and dividends.

Mazhar pointed out that the cost of doing business in Pakistan was lower compared to China, calling it one of the biggest advantages for the Chinese which encouraged them to invest in the textile sector of Pakistan.

Despite govt support, Pakistan’s textile industry lags behind

He stressed that the recently announced export-led growth package including zero-rated sales tax for the textile industry, drawback of local taxes and levies at 4% on yarn and grey fabric, 5% on processed fabric, 6% on textile made-ups and 7% on textile garments against the realisation of export proceeds provided an added advantage for investment in Pakistan.

The meeting was also attended by former Aptma chairman Muhammad Yasin Siddik, Naveed Ahmed, Saleem Shakoor, Nadeem Elahi Sheikh and others.

Published in The Express Tribune, April 15th, 2017.

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Reader Comments (12)

  • leela4fun
    Apr 15, 2017 - 11:00AM

    Will there be sufficient power?Recommend

  • Saeed Masood
    Apr 15, 2017 - 12:34PM

    Do it, more jobs for Pakistani labor. no one else can be trusted except China.Recommend

  • cautious
    Apr 15, 2017 - 2:52PM

    The goal is to expand and diversify production base – not replace Pakistan textiles with Chinese. Recommend

  • owie
    Apr 15, 2017 - 5:26PM

    Lol at indian bindians.

    I ask them….if cpec is bad for pak then why are they trying to sabotage the project?

    for all my pak brothers and sisters….read the analysis of andrew korybko on cpec. Youtube it….he outlines the benefits of cpec. Recommend

  • powayman
    Apr 15, 2017 - 7:56PM

    Many forget that China is Pakistan’s largest competitor in the vital textile industry – helping their textile industry doesn’t sound like a wise decision. Recommend

  • Shah
    Apr 15, 2017 - 10:38PM

    Good, but all such industrial units ‘must’ have a clause that all manpower shall be Pakistani citizens; Only Top level and Second layer management may be owners reps; Recommend

  • What Pakistan needs
    Apr 16, 2017 - 2:34AM

    Pakistan does NOT need textile units from China. Pakistan needs semiconductor, metallurgy, chemicals, electronics, circuit design and that type of investment that is the current Best practice project. Something, in the class of high technology, even if it is in mechanical engineering. The above would be duplication and repetition.Recommend

  • What Pakistan needs
    Apr 16, 2017 - 3:15AM

    China has been able to make Japanese Komatsu quality steel. All the road building in Pakistan has used the Komatsu steel based cranes and earth moving machinery. The steel making furnace can now use the Pakistani lignite coked coal. The steel is mainly the vanadium steel. South Africa taught me how to make a ferro-vanadium button using thermite process. Of course, we in Pakistan can do all this on our own but China is supposed to catalyze the development since we have suffered the consequences of 911 false flag for 20 years while insulating them from the wrath of the USA as has suddenly erupted via the excuse of DPRK. China must actively help Pakistan in high technology with a rapid speed before some unpredictable event takes place.Recommend

  • Haji Atiya
    Apr 16, 2017 - 6:19AM

    @leela4fun:
    Batteries come included.Recommend

  • Aware Citizen
    Apr 16, 2017 - 11:35AM

    Better declare Pakistan a Chinese province ! “aadha teetar aadha bater”
    “Half Partridge half quail”

    Why not implementing in Pakistan Death penalty on corruption charges/punishment as practiced in CHINA. ?????Recommend

  • usman
    Apr 16, 2017 - 6:25PM

    Since cost of wages in china going up they will be relocating their textiles to other countries. These companies will employ local people ,reduce costs and export. Win Win for Both Countries.

    BTW CPEC is great for Pakistan.Read article from DR ISHRAT HUSSAIN former SBP Governor.Recommend

  • Overseas Pakistani
    Apr 17, 2017 - 1:36AM

    @usman
    Economy has a spiritual quality and health influence on a nation. A distorted economy can cause Great Sickness to a nation. This is a fact both in Islam and Christianity. Today is Easter. Jesus, who said the other cheek, ONLY fought and showed anger against distorted economy when he upturned the tables of corrupt moneychangers (currency manipulators) in the Temple. The greatest inventors of currency manipulation are the Banksters of certain western countries, who indulge in Fractional Reserve Banking as well as printing money (and created the military-industrial complex). This begets other forms of cheating in retaliation, leading to the growth of corruption in the world. Another manifestation of this corruption will be – if Pakistani economy becomes one dimensional, which means ONLY TEXTILE. The HEALTHY economy is able to INSULATE itself from ups and downs in the outside world. Pakistan needs a healthy economy which means, diversification, semiconductor, metallurgy, electronics, machinery, and high technology. The solar grade silicon can be made in Pakistan from coke reduction of acid-washed sand. Pakistan needs refractory grade fused-oxide and Silicon-Carbide industry and mining of Magnesium from sea water. Ask the Chinese to first supply plans and directions for Magnesia industry and you will find it immediately produce profit as for the Quick Lime industry. Even dolomite lime when combined with seawater will double the amount of Magnesia. The goal of development is not exactly always the economy of scale but insulation from outside forces.Recommend

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