Chinese textile giant Challenge Fashion is moving ahead with plans to establish a major manufacturing facility in Pakistan, aiming to boost annual exports to as much as $500 million while creating thousands of jobs.
The development was discussed during a meeting between Federal Commerce Minister Jam Kamal Khan and a Chinese delegation led by Huwang, Chairman of Challenge Fashion, and Karen Chen, CEO of Challenge Apparel. The talks focused on export-oriented manufacturing, industrial facilitation, tariff reforms, and expanding Pakistan-China economic cooperation, according to an official statement issued Wednesday.
During the meeting, Huwang informed the minister that the company is setting up a large-scale manufacturing unit in Pakistan that will operate under international production standards. The first phase of the project is expected to be completed later this year.
The company’s long-term expansion strategy includes developing one of the country’s largest textile manufacturing operations, with the potential to create up to 20,000 jobs and generate annual exports worth between $400 million and $500 million.
The Chinese delegation highlighted Pakistan’s strategic location and competitive workforce as major advantages for international manufacturing and trade.
Last year, Challenge Fashion announced plans to establish a Special Economic Zone (SEZ) in Pakistan, with projected investments of $100 million over the next five years.
