KARACHI: China’s Challenge Fashion Group will establish a Special Economic Zone (SEZ) in Pakistan with planned investments of $100 million over five years, expected to generate $400 million in exports, Prime Minister Shehbaz Sharif’s office said on Friday.
The development comes as Islamabad seeks to draw more Chinese investment into manufacturing and textiles under the industrial arm of the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar flagship of Beijing’s Belt and Road Initiative.
China is Pakistan’s largest trading partner, with bilateral trade exceeding $25 billion in recent years, and Chinese companies have already invested heavily in power, transport, infrastructure, and telecoms projects across the country.
““We welcome the establishment of a Special Economic Zone (SEZ) by Challenge Group in Pakistan,” Sharif told a visiting delegation led by Challenge Fashion Chairman Huwang Weiguo.
“Through this SEZ, there will be assistance in technology transfer, skill development and sustainable industrial growth.”
