China’s $100m SEZ set to power Pakistan’s textiles

August 18, 2025 (MLN): A Chinese garments group, Challenge Fashion Private Limited, is setting up a Special Economic Zone in Pakistan with an investment of $100 million over the next five years, expected to generate $400m in exports.

The groundbreaking ceremony was held in the presence of Prime Minister Muhammad Shehbaz Sharif, who met with the company’s delegation led by Chairman Huwang Weiguo. 

He welcomed the initiative, noting that the Zone would promote technology transfer, skill development, and sustainable industrial growth, as per the press release issued.

The prime minister directed authorities to provide maximum facilitation to the Chinese group, reiterating his government’s commitment to advancing the industrial component of the China-Pakistan Economic Corridor (CPEC). 

He also underlined Pakistan’s interest in encouraging more Chinese industries to establish production units in the country.

Shehbaz Sharif further informed the delegation that a China-Pakistan Business-to-Business Conference would soon be held in China, creating new opportunities for private-sector collaboration.

Chairman Huwang Weiguo thanked the prime minister for the hospitality and said his company was building a modern textile industry in Pakistan. 

Challenge Fashion has already invested $17m in the country since 2014.

The event was attended by federal ministers Ahsan Iqbal, Jam Kamal, Attaullah Tarar, Ali Pervez Malik, and Sardar Awais Ahmad Leghari, Special Assistant to the Prime Minister Tariq Fatemi, and other senior government officials.

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