LAHORE: Challenge Fashion Private Limited, one of China’s largest textile companies, will invest $150 million in Punjab to establish a cutting-edge special economic zone on 100 acres, aiming to create Pakistan’s largest and most advanced textile production hub.
The investment stems from an MoU signed between the Bank of Punjab and Challenge Fashion, under the directives of Chief Minister Maryam Nawaz Sharif. The facility will have the capacity to manufacture between two and eight million garments monthly using six million metres of locally sourced fabric, with exports geared toward major American brands.
Massive Job Creation and Export Growth
The project is expected to create 18,000 jobs within eight months and expand to 25,000 jobs over five years, while contributing more than $100 million annually in exports. By relying on domestic raw materials, the initiative is also expected to strengthen Pakistan’s textile supply chain and enhance competitiveness in global markets.
Strengthening Industrial Partnership with China
In a meeting with Chinese Consul-General Zhao Shiren and Challenge Group Chairman Wego Hong, CM Maryam said Punjab is actively working to relocate large-scale Chinese textile factories to the province and will extend full support to foreign investors through pro-business policies. She termed the Challenge Special Economic Zone a catalyst for industrial expansion and lauded the company’s expertise in turning plastic waste into high-performance fabrics.
Skilled Workforce Development
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Maryam Nawaz stressed that the Punjab government is investing heavily in technical education through TEVTA to prepare a skilled workforce for the growing industrial sector. She said the garment city project would benefit from Challenge Group’s technological innovations and international expertise.
Chinese Commitment to Advanced Technology
Wego Hong pledged to introduce advanced textile machinery and technology that exceed Chinese benchmarks, along with innovative practices to transform Punjab’s textile sector. He credited Punjab’s investor-friendly climate, strengthened during Maryam Nawaz’s recent visit to China, for encouraging the investment.
Expansion of Public Transport with Electric Buses
Separately, CM Maryam announced the arrival of 100 electric buses from China’s Yantai Port. The buses will be deployed in districts with limited transport infrastructure, including Mianwali, Okara, Nankana Sahib, Muzaffargarh, Vehari, Pakpattan, and Dera Ghazi Khan, to expand public transport access.