Various Chinese firms have signed MoUs with local Pakistani players to form joint ventures in the textile industry of the latter.
Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) confirmed that the agreements were inked at the recently concluded Textile Asia Trade Exhibition in Lahore.
The deals have been signed to bring foreign investment worth US $ 375 million to the textile sector of Pakistan.
Ijaz Khokhar, Central Chairman, PRGMEA reportedly said, “Many Chinese companies during the exhibition showed their interest in relocating production facilities of textile, garments, and accessories in Punjab region of the country.”
Punjab represents around 80 per cent of textile and garment industry alone in Pakistan.
According to media reports, the Chinese entrepreneurs will spend a minimum of US $ 25 million per unit.
Along with the financial investment, the companies will also bring in their technologies and machinery for ‘value addition’ in the textile products manufactured in Pakistan.
This move will not only increase the local exports but will also lower the country’s trade deficit with China.
Meanwhile, to make this investment more effective, the PRGMEA has announced that it will tie up with local companies from Gujranwala, Lahore, Sialkot, and Faisalabad areas.
Under the deal, the trade association will provide training to the local engineers in manufacturing spare parts of sewing and textile machines to make the JVs with the Chinese firms successful. The local companies will export those products to China.
