The development of industrial estate in Punjab is about to experience a significant boost as Shanghai Challenge Textile Co. Ltd. is planning to set up a multimillion dollar industrial park in Lahore. The project’s total worth is estimated at 150 million dollar. It may be probably the very first foreign Direct Investment (FDI) that will be received by the export industry in Pakistan at such a large scale.
Contribution of Shanghai-based Firm in Textile Exports of Pakistan
The Shanghai-based firm Challenge already has a presence in the textile industry of Pakistan. It currently operates a plant on Multan Road in the vicinity of Lahore, which was established in 2017.
During the 2019-2020 fiscal year, this garment manufacturing unit generated up to $44 million revenue, significantly contributing to textile export of Pakistan. The export revenue of this Chinese manufacturing facility is expected to grow up to $54 million during the fiscal year 2020-21.
Latest Updates on Upcoming Industrial Park in Lahore
The grand-scale industrial estate project in Lahore is named as “Challenge Fashion Industrial Park”. It is going to be one of the largest industrial parks in Pakistan. The development work on Challenge Fashion Industrial Park is likely to begin this year and it is expected to go functional by July 2022.
Once this large-scale facility is operational, it will dramatically impact the sportswear exports from Pakistan. The export revenue is expected to hit a $120m mark in the first year, which is projected to grow up to a whopping $400m within the next few years.
Moreover, an industrial park running at this scale would also significantly contribute to the country’s job market. Challenge Fashion Industrial Park would create around 10,000-11,000 employment opportunities for the locals.
Located in the outskirts of Lahore near the Kasur district of Punjab, this industrial park has been planned with fully-equipped dyeing facilities and fabric manufacturing units, which will mainly produce sportswear.
“Pakistan is the ideal location for such garment manufacturing because of the abundance of cheaper labour. The investment and tax policies for SEZs and new projects are also good. We’ve confidence to be here,”said Chen Yan, the managing director of Shanghai Challenge Textile Co. Ltd., while giving a statement to a renowned publication in Pakistan.
More About Industrial Estate Development in Punjab
The government of Punjab has recently formed the Punjab Industrial Estates Development & Management Company (PIEDMC). It’s a non-profit organization, which has been formed to promote industrialization in the region to boost economic activity. Another noteworthy project that PIEDMC is working on is Quaid-e-Azam Business Park.
It is a megascale project, which spreads over 1536 acres of land. Quaid-e-Azam Business Park is conveniently linked with Lahore-Islamabad (M2) Motorway near Sheikhupura. It has a dedicated motorway interchange located right at its entrance.
To facilitate the labours, around 200 acres of the industrial park have been dedicated for the development of residential units. It will be an accommodation facility for over 30,000 people working in the industrial park.
The authorities have plans to set up many other similar facilities in different parts of the country to expedite the process of industrial estate development in the region. The official website of the Punjab Industrial Estates Development & Management Company (PIEDMC) has more relevant information and detailed information on all these upcoming projects.
This was everything you needed to know about the newly-proposed industrial park in Lahore. When this facility will be fully functional, the Chinese firm aims to export sports apparel from Pakistan to different parts of the world including the Americas, Europe, and Asia-Pacific as well as many other regions. It’s expected to make our country one of the biggest sportswear export hubs in the world.
So, how do you think this groundbreaking development is going to impact the textile industry in Pakistan? Share your thoughts with us by dropping us an email at firstname.lastname@example.org.
On a side note, if you want to learn more about the major exports of Pakistan, don’t forget to read this blog. We have also written a detailed piece on the most amazing handicrafts of Pakistan that may interest you.
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