China's Ruyi Shandong Group to build textile parks in Pakistan, targeting $5 billion in exports

Parks will be designed to operate with solar energy, feature zero carbon emissions, incorporate automated technologies

During a meeting with Prime Minister Shehbaz Sharif on Friday, China’s Ruyi Shandong Group announced its intention to establish textile parks in the Sindh and Punjab provinces of Pakistan. 

The initiative aims to generate up to $5 billion in textile exports and enhance Pakistan's position as a global textile hub. The parks will be designed to operate with solar energy, feature zero carbon emissions, and incorporate modern automated technologies. 

In the first phase, the initiative is expected to generate $2 billion in exports, with a projected increase to $5 billion in the second phase. Additionally, the parks are anticipated to create between 300,000 and 500,000 jobs for local residents.

Chairman Qiu Yafu outlined the plans during the meeting, stating that the proposed textile parks will attract approximately 100 major Chinese textile companies. He emphasised that these facilities will meet international standards and focus on increasing Pakistan’s textile exports.

The foundation stone for the textile parks is set to be laid by the end of the year, with completion expected within three years. Ruyi Group also plans to establish wholesale commodity centres in Karachi and Lahore.

To facilitate this initiative, working groups will be formed in Islamabad and Beijing to streamline cooperation between Pakistan and the Chinese business group. PM Shehbaz highlighted the longstanding support China has offered Pakistan, noting that economic relations are strengthening. 

A memorandum of understanding was signed between Pakistan’s Board of Investment and Ruyi Shandong Group, with the prime minister present to oversee the agreement. Additionally, a special committee led by Deputy Prime Minister Ishaq Dar was established to monitor the project’s progress.