Islamabad: Pakistan’s textile sector is likely to expand significantly after RUYI Shandong, a leading Chinese textile business, inked a Memorandum of Understanding (MoU) with the Board of Investment (BoI) to establish modern textile parks.
These parks, designed with zero-carbon and automated facilities, aim to boost Pakistan’s textile exports to USD 5 billion and create about 500,000 jobs.
The agreement was finalized during a meeting between a nine-member delegation from RUYI Group, led by Chairman Qiu Yafu, and Prime Minister Shehbaz Sharif. This collaboration comes after the Prime Minister’s recent visit to China, highlighting stronger economic ties between the two nations.
Under the MoU, RUYI will develop international-standard textile parks across Pakistan and invite around 100 Chinese textile companies to invest. These parks will focus on sustainability, using solar energy and automation to create eco-friendly production facilities.
Prime Minister Shehbaz Sharif praised the strengthening economic partnership between Pakistan and China, emphasizing RUYI’s investment as a significant boost for the textile industry. He also noted RUYI’s previous investment in the Sahiwal Coal Power Plant, a key project under the China-Pakistan Economic Corridor (CPEC).
Chairman Qiu Yafu explained that the first phase of the textile parks will generate USD 2 billion in exports, with the potential to increase exports to USD 5 billion in the second phase. The project will also create between 300,000 to 500,000 jobs.
Construction of the parks will begin by the end of 2024, with completion expected within three years. Additionally, RUYI plans to establish wholesale commodity centers in cities like Karachi and Lahore to complement the parks. Both sides agreed to create working groups in Islamabad and Beijing to ensure smooth progress on the project. Prime Minister Shehbaz Sharif also set up a special committee, led by Deputy Prime Minister and Foreign Minister Ishaq Dar, to monitor the initiative’s development.
Chairman Qiu emphasized RUYI’s strong ties to Pakistan, expressing confidence in the project’s rapid execution, often referred to as “Shehbaz Speed,” reflecting the Prime Minister’s reputation for completing projects quickly.
Concluding, this is a hopeful and encouraging news for the economics of Pakistan.
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