Chinese firm plans manufacturing facility in Pakistan with up to $500 million export potential

A Chinese company is establishing a large-scale manufacturing facility in Pakistan with the potential to generate annual exports of $400 million to $500 million and create up to 20,000 jobs, according to details shared during a meeting with Commerce Minister Jam Kamal Khan on Wednesday.

The Chinese business delegation was led by Challenges Fashion Chairman Huwang Weiguo and Challenge Apparel Chief Executive Officer Karen Chen.

According to an official statement, the delegation briefed the commerce minister on progress related to the company’s industrial project in Pakistan and outlined plans for expansion in manufacturing capacity, exports and employment generation.

Huwang informed the minister that the first phase of the manufacturing facility, being developed under international production standards, is expected to be completed later this year.

He said the company’s long-term expansion plans envisioned one of the country’s larger export-oriented industrial operations with annual export potential of up to $500 million.

The delegation highlighted Pakistan’s geographic position and availability of skilled labour as factors supporting industrial investment and export manufacturing.

Officials said both sides discussed industrial facilitation, tariff rationalisation, export-oriented manufacturing and broader Pakistan-China economic cooperation.

The investors also raised concerns regarding specialised industrial construction materials and manufacturing inputs that are not currently produced locally and would need to be imported to maintain international production and safety standards.

Jam Kamal Khan invited the delegation to formally submit details of products not manufactured domestically along with relevant tariff classifications so the matter could be reviewed under the government’s tariff rationalisation framework.