China’s plan to set up textile parks in Pakistan is a very encouraging and major step toward making the country a global textile hub. This initiative will improve Pakistan’s production, quality control, and focus on high-value products, offering significant benefits.
Dr. Liaquat Ali Shah, Executive Director of the CPEC Centre of Excellence, explained to WealthPK that this partnership comes at an important time for Pakistan as it works to revive its economy. He noted that this project will strengthen economic ties between Pakistan and China and support key sectors like infrastructure, energy, and industry.
He mentioned that Pakistan’s textile industry has faced challenges, including outdated technology, high production costs, and limited access to international markets. He said, “China has advanced textile technology, which will not only provide financial help but also give Pakistani manufacturers access to new machinery and materials, reducing production costs.” Trade agreements for sustainable textiles could also make Pakistani products more competitive globally.
The shift towards sustainability offers an opportunity for Pakistan’s textile sector to become a leader in eco-friendly textiles, which could help increase exports while supporting global climate efforts.
An official from Trade Development Authority of Pakistan (TDAP) stated that Pakistan’s textile industry is struggling badly due to rupee depreciation and rising energy costs, which have increased production expenses by 100% recently. With energy costs so high, many businesses face difficulties staying profitable.
The official warned that more factories might close without government support, consequently leading to unemployment. He recommended government policies to ease this transition, such as tax breaks for manufacturers adopting green technologies. The new textile parks will also boost industry growth and create jobs. The new textile park most probably more growth and more employment in Pakistan
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