Islamabad: Pakistan’s textile industry is expected to experience a notable upsurge as RUYI Shandong, a prominent Chinese textile enterprise, has signed a Memorandum of Understanding (MoU) with the Board of Investment (BoI) to create cutting-edge textile parks.
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According to specifics, these automated, zero-carbon parks are predicted to generate about 500,000 jobs and drive the nation’s textile exports to an astounding USD 5 billion. Prime Minister Shehbaz Sharif and a nine-member team from the RUYI Group, led by Chairman Qiu Yafu, approved the deal during their meeting. This partnership comes after the prime minister’s recent trip to China, which was a significant step toward enhancing Sino-Pak economic ties.
In accordance with the MoU, RUYI will establish textile parks in Pakistan that meet international standards and will welcome investment from over 100 Chinese textile companies. The parks, which will be constructed in two areas, will use automation and solar energy to create production conditions that are environmentally friendly and sustainable.
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By the end of 2024, construction is expected to start on the parks and finish in three years. Additionally, RUYI aims to develop wholesale commodity centers in major cities like Karachi and Lahore to complement the textile parks. During the discussion, the parties decided to set up working groups in Beijing and Islamabad to guarantee the project’s seamless execution. Prime Minister Shehbaz Sharif also established a special committee with federal ministries and important officials in charge, led by Deputy Prime Minister and Foreign Minister Ishaq Dar to monitor the initiative’s advancement.
According to RUYI Group Chairman Qiu Yafu, the first phase of construction of these textile parks is estimated to generate USD 2 billion in exports, positioning Pakistan as a significant hub for textiles and apparel. Between 300,000 and 500,000 new employment might be created while exports could exceed $5 billion during the second phase.
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