Prime Minister Shehbaz Sharif on Friday inaugurated a new special economic zone (SEZ) in Islamabad, to be developed by Chinese textile group Challenge Fashion Private Limited. The project, which involves an investment of \$100 million over the next five years, is projected to generate \$400 million in exports for Pakistan, according to the Associated Press of Pakistan (APP).
Pakistan and China enjoy a longstanding strategic partnership, strengthened by major development initiatives such as the China-Pakistan Economic Corridor (CPEC). Now in its second phase, CPEC is being described as a “lifeline” for Pakistan’s economy, with a focus on industrialisation, special economic zones, clean energy, agriculture, and livelihood projects. The newly launched SEZ in Islamabad is part of the industrial component of CPEC and is expected to contribute significantly to technology transfer, skill development, and sustainable industrial growth.
At the inauguration, PM Shehbaz welcomed the investment and expressed appreciation for the confidence shown by the Chinese textile group in Pakistan’s market potential. Meeting with the company’s delegation, led by Chairman Huwang Weiguo, the prime minister reaffirmed Pakistan’s commitment to further strengthening bilateral ties and “taking them to new heights.” Federal ministers Ahsan Iqbal, Jam Kamal, Attaullah Tarar, Ali Pervez Malik, Sardar Awais Ahmad Leghari, and Special Assistant to the Prime Minister Tariq Fatemi were also present.
Shehbaz assured the Chinese delegation of full government support for the timely establishment of the SEZ and voiced his desire to see similar projects set up across the country. He also announced that a China-Pakistan Business-to-Business Conference will soon be held in China to foster collaboration between private enterprises from both nations.
Chairman Huwang expressed his ambition to develop a modern textile industry in Pakistan and thanked the prime minister for his support and hospitality. His remarks reflect growing Chinese investor interest in Pakistan’s industrial sector, particularly under CPEC’s expansion plans.
Earlier this year, the Sindh government signed an agreement with Chinese and local investors for the development of the Dhabeji SEZ under CPEC Phase II, while Planning Minister Ahsan Iqbal reaffirmed at a July meeting that SEZ development remains a top federal priority. The Islamabad project marks another step towards deepening economic cooperation between Pakistan and China while boosting Pakistan’s export potential.
