China’s eastern province to relocate industries to Pakistan

Labour-intensive industry of Shandog province will shift to Pakistan to save costs

ISLAMABAD: China’s eastern province, Shandong, is set to relocate its labour-intensive industries to Pakistan to reduce production cost, as revealed in a meeting between Ministry of Commerce and Chinese business delegation on Thursday. 

The meeting was headed by Minister of Commerce, Syed Naveed Qamar, Hou Jianxin, Chairman Shandong Xinxu Group Corporation China.

As per official sources, while taking the benefit of the decision of Shandong government, Jianxin came up with the vision to build an industrial park in Pakistan. The industrial park will serve as a focal point for all the industrial requirements of Pakistan from China and vice versa, he elaborated.

The Chinese delegation has informed that the projects like solar panels assembly plant, metal refining plants, fertilizer production plant, food processing plants (dry milk production, seafood processing, meat processing) are being considered for future investment. Pakistan and China enjoy strong relations and expressed the hope that the trade and economic ties between the two countries would be further cemented with the passage of time.

Meanwhile Qamar appreciated the decision of the Shandong government to shift its industry to Pakistan, which would not only save foreign reserves of the country but also create job opportunities in the country.

The minister sought comprehensive proposals from the Chinese companies who are interested in shifting their businesses to Pakistan. It will then be forwarded to the Board of Investment (BOI) for expediting the investment process.

The minister was of the view that the barter trade model, which has already been approved by the federal cabinet, could be used to enhance exports.

China is playing a significant role in the economic development of our country and the barter trade model will further strengthen the bilateral trade.  The minister later assured full support of the Pakistani government to the Chinese Companies to enhance export volume of the country.

The relocation of Chinese industry to Pakistan has been in discussion since the launch of the multibillion dollar China Pakistan Economic Corridor (CPEC) program.

However, Pakistan has so far failed to woo Chinese industries as many have gone to Cambodia, Laos and even Ethiopia, though their cost of labor is higher than the cost in Pakistan and their markets are far smaller in terms of population, as per Pakistan Business Council’s study. But this time Pakistan is more likely to seize the opportunity given the impact it will create on the exisitng foreign reserves. 

The study also reveals that Beijing is shifting its industrial units beyond borders to remove the “Made in China” label from many products to win back US markets.





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Ghulam Abbas
Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]


  1. Why we are not setting industrial parks to produce our industrial requirements to increase export and decrease import of raw materials

    • You have to be specific in the Computer Science jobs. I don’t think China has plenty IT jobs. They have AI to do the jobs. So I think you should be prepare to have high level Computer Science expertise. Also, English would not be much good in Chinese computer programmings. They still use the binary code, but Chinese language is more sophisticated. That is why they develop AI faster than anyone.

  2. syadd Naveed Qamar an old person .young mibds,are required for research .we afraid they may not be giving way to another East ndia Company .old useless polititions should rest now as for sure they can not foresee the future.

  3. Why Pakistan. Come to Bangladesh. 10 Times better facilities and Cheaper Energy Gas Electricity and Labour. Thanks a lot.

    • Bangladesh showed the way. Look Pakistan, you have a great potential ! my heart bleeds seeing Pakistan being crumbled like a failed state. I am not a Pakistani. am a chittagonian. First and foremost Pakistan has to get rid of Militancy. Pakistan will rise up one day InshaAllah.

    • Pak rupee is cheaper than Bengali takka so everything is more cheaper for china in Pakistan. then Pakistan ‘s location is far better than Bangladesh to access global markets

    • I think that China has taken a good decision because Pakistan is the nebour country and it is easy to shift Chinese buisnes to pakistan

  4. its good companies are settling in pakistan.
    our export volume will increase.. meanwhile pakistani governament should make a law every pakistani industry have to export 10%of it total production.

  5. it’s very good. I love china. it’s will be play a best role in friendship of Pakistan and china. the industry shift to Pakistan is the most benefit for China because Pakistan never bring car from other countries but all Pakistan nation will be buying car from at . also this industry will be easy export there car to other countries around Pakistan even up to middle East this industry able to control the whole area. the all Asia will be demand from this industry because at is closed to all countries. in short it’s very beneficial to China. also Pakistan have also be benefits in at . means both countries china and Pakistan have a best benefit. by that the friendship of Pakistan and china will be become more deeply and strong.

  6. Pakistan is the best place. Pakistan is the heart of Asia. from Pakistan every industry is able to transfer there products to all ASIA also up middle East countries. means if you come to Pakistan then you able to control the whole global market easy.

  7. We lack the common sense to realize or appre iate that transfer of manufacturing plants and sale for these products from pakistan is going to generate huge revenue and capacity i
    building in terms of transfer of technology. How can we afford to lose an opportunity like this. We should welcome China for relocation. Build environment to expedite this.


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