Chinese investors invited for JVs in Pakistan textile industry

All Pakistan Textile Mills Association (Aptma) Aamir Fayyaz during his presentation to a delegation of textile groups from Tianjin city of China headed by Tianjin People’s Association for Friendship with Foreign Countries Vice President Chen Wieming. On the occasion Chinese investment were invited for Joint Ventures (JVs) in textile industry.

He said that Pakistan has opportunities for Chinese investors to enter into joint ventures or relocation of their industry and avail duty free market access under the GSP Plus facility. Prime Minister Nawaz Sharif has offered a package to the exporting industry with an added attraction of 12 to 15 percent for producing and manufacturing in Pakistan.

Fayyaz said that to lessen the cost of doing business in Pakistan, the prime minister has recently announced export led growth package encompassing provision of DLTL at 4 percent on yarn and greig fabric, 5 percent on processed fabric, 6 percent on textile made ups, 7 percent on textile garments against realization of exports.

Pakistan’s foreign investment policy offers zero percent duty on imports of capital goods, zero percent corporate income tax rate, 10 years corporate income tax holiday, 50 acres minimum land required for SEZ, and permission of 100 percent private ownership.

The visiting Chinese delegation appreciating the potential and opportunities highlighted by the Aptma chairman, expressed the hope that investors of both sides would enter in successful joint ventures to benefit from each others’ entrepreneurial potential. They are planning to enter into joint ventures for 100,000 spindles, 500 airjet looms and fabric dyeing and printing plants in Pakistan.

The Chinese delegation said that by resolving the high cost of doing business and environmental issues has made Pakistan an ideal destination for relocation of Chinese textile industry.