A Chinese apparel firm is investing a grand total of $150 million in anindustrial park project on Lahore’s border with Kasur. The park willfeature state-of-the-art fabric units, dyeing facilities and garmentmanufacturing units for exporting sportswear from Pakistan to the Americas,Europe, Asia-Pacific and other regions of the world.
The project by the Shanghai-based Challenge is reportedly the first foreigndirect investment (FDI) in an export industry in Pakistan. The firm isalready operating as Challenge Apparel since 2017 with its garmentmanufacturing unit on Multan Road near Lahore fetching nearly $44 millionin export revenue during the last fiscal year, according to its managingdirector Chen Yan, who is known in the government and business circles asKaren.
She expects exports from her existing facility to grow to $54 million thisfiscal year. Once the Challenge Fashion Industrial Park becomes functionalfrom July next year, its sportswear exports from Pakistan are projected togrow to $120 million in the first year and to $400 million over the nextfew years
The largest Pakistani textile exporting company’s exports stood at lessthan $300 million last year.
Talking about the industrial park in an interview with Dawnlink,Yan explained that her company’s main aim behind the flagship industrialpark was to make Pakistan a “hub for sportswear exports”.
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“We’re bringing modern, most-efficient and environment-friendly technologyto Pakistan from across the world besides introducing new ways ofmanagement at our new flagship industrial park. Our plan is to makePakistan the hub for our polyester-based sportswear exports,” she said.
Challenge entered the Pakistan market in 2014 when it invested $47m in ajoint venture with Masood Textiles, a major exporter from Faisalabad. Butthe venture couldn’t last long as the company bled money profusely and theChinese investor decided to relocate to Lahore as an independent company.
