Two major Chinese companies have announced plans to establish plants in Pakistan for producing raw materials for the textile industry, facilitated by the Special Investment Facilitation Council (SIFC). Rainbow Industries Limited is set to launch a joint venture with Shaoxing Chemical Industry, aimed at revitalizing the textile sector.
These projects are expected to bring in millions of dollars in investment, with the goal of manufacturing affordable raw materials for the local textile industry. This development comes as Pakistan's textile sector faces challenges, including rising energy tariffs, which have impacted foreign investment.
To address these issues and promote the industry's recovery, 'Rainbow Group' and 'Punjab Dyes and Chemical Merchants Association' recently organized a two-day exhibition. The 'Nine Color and Chem Expo' attracted over 300 exhibitors from China, Malaysia, Turkey, and Iran, providing a platform for stakeholders and business leaders to discuss industry improvements.
The federal government has already announced incentives for foreign investors, including 10-year duty-free machinery imports and the establishment of units in special economic zones. These measures, coupled with SIFC's support for Chinese investment, are expected to facilitate technology transfer and advance Pakistan's textile industry.
The collaboration between Pakistani and Chinese firms, backed by government initiatives, signals a potential turning point for the country's crucial textile sector.
