Prime Minister Shehbaz Sharif on Friday broke ground on a Special Economic Zone (SEZ) to be developed by Chinese garments giant Challenge Fashion Private Limited, marking a $100 million investment over the next five years. The project aims to boost Pakistan’s textile sector through technology transfer, skill development, and modern industrial practices while significantly increasing the country’s export potential. Officials expect the SEZ to generate $400 million in exports once fully operational.
Before the ceremony, the prime minister met a delegation led by Challenge Group Chairman Huwang Weiguo and welcomed the company’s decision to expand its presence in Pakistan. Since 2014, the group has already invested $17 million in the country. Shehbaz Sharif emphasized that the government would provide all possible facilities for the timely completion of the project, underlining its importance for sustainable growth and economic diversification.
The premier highlighted that the SEZ aligns with the industrial development goals of the China-Pakistan Economic Corridor. He stressed that Pakistan seeks to benefit from China’s expertise in textiles while deepening bilateral economic ties. He reiterated that the government remains committed to attracting foreign industries and creating an enabling environment for international investors, particularly those willing to establish large-scale manufacturing units in Pakistan.
During the meeting, Shehbaz Sharif also announced that a China-Pakistan Business-to-Business Conference will soon be held in China. This event will provide a platform for private enterprises from both countries to explore joint ventures and strengthen commercial partnerships. He described Pakistan-China relations as a “time-tested friendship” that continues to grow stronger through shared economic goals.
Challenge Group Chairman Huwang Weiguo thanked the prime minister for the warm reception and expressed confidence in Pakistan’s market potential. He confirmed the company’s plan to set up a state-of-the-art textile manufacturing facility in the SEZ, aiming to meet both domestic and international demand. The facility will integrate advanced machinery, sustainable production processes, and employment opportunities for local workers.
The groundbreaking ceremony was attended by several federal ministers, special assistants to the prime minister, and senior officials. Their presence reflected the government’s strong commitment to supporting strategic foreign investments. The event also underscored Pakistan’s determination to strengthen industrial output, enhance exports, and deepen economic cooperation with China.