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Chinese firms all set to invest in Pakistan's textiles

2014-1-28

Many Chinese companies are all set to invest in Pakistan's textile industry and a Chinese delegation has recently visited Pakistan to assess the investment potential in Pakistan. They are interested to know about the working environment, gender equality, price and quality competitiveness, transportation cost between province of Punjab to Chinese province Xinjiang through road link while using the Gwadar Economic Corridor.

Prime Minister Nawaz Sharif has announced construction of road link between Khanjrab to Kashgar to enhance trade co-operation between the two sides. The distance between Lahore and Kashgar is 1800KM and the Chinese investors are interested to assess the transportation cost between the two destinations.

Further, the visiting Chinese delegation has also shown interest in knowing about the Customs clearance arrangements at the Sust border of Khunjrab Pass. Presently, the Chinese textile sector is importing yarn from Uzbekistan through a cost effective rail link facility. At the initial stage, said the sources, Chinese companies would be interested to import yarn from the Punjab-based textile industry. The Chinese companies import some 40,000 tones of products from Pakistan. They were studying trading cost at the first step, said sources.

However, the Chinese were studying the corridor cost in order to fetch as well as relocate their units to Pakistan in order to grab the opportunity oozing out of GSP plus status, said sources. Interesting, the Chinese have also shown concern towards the energy problems in Pakistan, hindering the growth of textile industry, particularly in Punjab. However, they have expressed their satisfaction simultaneously on the alternative energy arrangements with local industry including generators and Captive Power Plants, keeping the industry wheel running for 364 days a year with only one leave. Sources said efforts were also underway for FTA between the two countries to maximise bilateral trade.

Source:Business Recorder
 
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