Islamabad: In a significant development for Pakistan’s textile industry, RUYI Shandong, a prominent Chinese textile company, has signed a Memorandum of Understanding (MoU) with Pakistan’s Board of Investment to establish two advanced textile parks in the country. These parks are expected to dramatically increase Pakistan’s textile exports to USD 5 billion and generate about 500,000 jobs.
According to Zameen.Com, the MoU was signed during a meeting between a nine-member delegation from RUYI Group, led by Chairman Qiu Yafu, and Prime Minister Shehbaz Sharif. This agreement is a follow-up to the prime minister’s recent visit to China and signifies a major step in bolstering Sino-Pak economic relations.
The planned textile parks will be equipped with zero-carbon, automated facilities, aiming to set international standards for sustainable and eco-friendly textile production. RUYI plans to invite approximately 100 Chinese textile firms to invest in these parks, which will be constructed in two different regions of Pakistan. The use of solar energy and automation technology will be central to the design and operation of these parks.
Prime Minister Shehbaz Sharif expressed his appreciation for the growing economic ties between Pakistan and China. He highlighted the investment as a crucial development for Pakistan’s textile sector. The prime minister also noted RUYI’s historic role as the first foreign investor in the Sahiwal Coal Power Plant, a key project under the China-Pakistan Economic Corridor (CPEC).
RUYI Group Chairman Qiu Yafu shared that the textile parks aim to transform Pakistan into a major hub for textiles and garments. He projected that the first phase of the parks would generate USD 2 billion in exports, with potential to reach USD 5 billion by the second phase, simultaneously creating 300,000 to 500,000 jobs.
The construction of the textile parks is scheduled to commence by the end of 2024, with a completion target within three years. Additionally, RUYI plans to establish wholesale commodity centers in major Pakistani cities such as Karachi and Lahore to support the textile parks. Both parties agreed to create working groups in Islamabad and Beijing to ensure the project’s smooth implementation. A special committee led by Deputy Prime Minister and Foreign Minister Ishaq Dar, including federal ministers and key officials, has been established to oversee the progress of this initiative.
Chairman Qiu highlighted RUYI Group’s commitment to the project and expressed confidence in its timely completion, attributing this optimism to the “Shehbaz Speed”, a term used to describe Prime Minister Shehbaz Sharif’s efficacy in executing development projects.
The signing event was attended by several senior officials, including Deputy Prime Minister Ishaq Dar and the ministers of commerce, industries, and power, underscoring the project’s importance for Pakistan’s economic future.