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China has offered Pakistan to set up a large-sized spinning
unit in the proposed textile cioty in Karachi. The offer
was made by Ms. Wang Tian Koi, leader of a visiting Chinese
Trade delegation, in a meeting with the Federal Minister
for Industries Liaquat Ali jatoi.
The delegation leader also requested the Minister to
send them more details of the textile city being established
at Karachi and of investment and taxation policies to
enable them make an in-depth study for their investment
plans in Pakistan.
Ms. Wang Tian Koi appreciated the economic policies of
the government and stated that after setting up a spinning
mill they will come forward for establishing a weaving
unit again as a joint venture. She said that both countries
enjoy very friendly relations and the joint venture cooperation
will also continue in other sectors.
She said that Chinese companies are also willing to provide
machinery for two textile cities in the Punjab province
- at Lahore and Faisalabad - which are expected to attract
an investment worth $500 million. While talking to Mr
Jatoi, she also proposed that Pakistan should invest in
the garments manufacturing sector in China.
The Minister appreciated the proposal made by China for
setting up of a spinning unit and offered them land in
the proposed Textile City at reasonable rate and stated
that all the facilities will be provided there for investors.
He said that in Karachi the Textile City Project will
be set-up in the industrial zone of Port Qasim, covering
an area of 1,250 acres. The textile city project would
provide job opportunities to about 80,000 persons and
would be completed in two and a half years. The Minister
said that private investments for Textile City Project,
Karachi, are estimated as Rs 12.5 billion with a production
of 400 tonnes per day.
The Minister said similar Textile Zones would be set
up in Lahore and Faisalabad. He said that the Textile
Export Zones would be helpful in promoting the industry
grow in size, produce larger volumes of textile products
and become competitive with our close cooperation.
He said that the Textile City would enhance textile exports
by $2.5 billion per annum. He informed the delegation
that textile sector is a priority sector as Pakistan's
75 % exports are based on textile. The Minister also stated
that there would be good news in the coming budget regarding
import of raw material and textile machinery.
China has shown the highest predicted growth. Considering
its capability for higher utilisation of several quotas,
and the important production capacities, the estimated
rise is 150% in the overall export of textile and clothing.
This is about half of the projected world market in post
January 1, 2005.
Chinese companies are keen to set up export-oriented
industries in Pakistan. With Pakistan's raw material,
combined with the Chinese expertise and machinery, the
two countries could develop a strong industrial base to
earn precious foreign exchange. Since China is rapidly
facing restrictions on its export quota from Western countries,
including the US, the entrepreneurs, particularly in private
sector, are looking forward to seeking help of their friendly
countries to achieve their export targets. Some of the
Chinese are even prepared to shift their industrial units
to Pakistan, according to the leader of the Chinese delegation.
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