Chinese companies are studying the trading cost in order to fetch as well as relocate their units to Pakistan in order to grab the opportunity oozing out of GSP plus status. Chinese delegation has recently visited Pakistan to assess the investment potential in Pakistan as many Chinese companies are all set to invest in Pakistan's textile industry

The visiting Chinese delegation has shown interest in knowing about the Customs clearance arrangements at the Sust border of Khunjrab Pass. Presently, the Chinese textile sector is importing yarn from Uzbekistan through a cost effective rail link facility. At the initial stage, said the sources, Chinese companies would be interested to import yarn from the Punjab-based textile industry. The Chinese companies import some 40,000 tones of products from Pakistan.

Further, they are interested to know about the working environment, gender equality, price and quality competitiveness, and most importantly the transportation cost between province of Punjab and Chinese province Xinjiang, through road link while using the Gwadar Economic Corridor.

Prime Minister Nawaz Sharif has announced construction of road link between Khanjrab to Kashgar to enhance trade co-operation between the two sides. The distance between Lahore and Kashgar is 1800KM and the Chinese investors are interested to assess the transportation cost between the two destinations. Sources said that were also in progress for FTA between the two countries to maximize bilateral trade.

Interesting, the Chinese have also shown concern towards the energy problems facing by Pakistan textile industry which is affecting the growth, particularly in Punjab. However, they have expressed their satisfaction simultaneously on the alternative energy arrangements with local industry including generators and Captive Power Plants, keeping the industry wheel.