Islamabad, Aug 15 (PTI) Pakistan Prime Minister Shehbaz Sharif on Friday inaugurated a special economic zone (SEZ) in Islamabad to be set up by a Chinese textile group.

State-run the Associated Press of Pakistan (APP) reported that the project would generate exports worth USD 400 million for the country.

It will be set up by the Chinese textile group Challenge Fashion Private Limited, which is set to invest USD 100 million over five years in the project.

PM Sharif welcomed the establishment of an SEZ, saying that the “initiative would facilitate technology transfer, skill development, and sustainable industrial growth”.

He also met with the company’s delegation — led by its chairman Huwang Weiguo, expressing Pakistan’s willingness to “take bilateral ties to new heights”, APP quoted him as saying.

The prime minister assured the delegation of his government’s complete facilitation for setting up the zone as part of the “industrial component of CPEC,” and thanked the delegation for having faith in the Pakistani market, APP reported.

The prime minister expressed Pakistan’s desire to set up more such units across the country and hoped to benefit from China’s textile sector.

He also said that “a China-Pakistan Business-to-Business Conference would soon be held in China, providing an opportunity for collaboration between private businesses of both countries,” APP reported.

Chairman Huwang said he aims to establish a modern textile industry in Pakistan and thanked the prime minister for his support and hospitality.

Pakistan and China have strong economic ties and the USD 60 billion China-Pakistan Economic Corridor (CPEC) is a leading exponent of the relationship. Currently, phase II of the programme is being implemented with a focus on industrialisation, development of special economic zones and projects related to clean energy, agriculture and livelihood projects. PTI SH NPK NPK

Special economic zone established to enable export-oriented textile investment with government facilitation and technology transfer. A special economic zone in Islamabad has been inaugurated for establishment by a Chinese textile group as part of the CPEC industrial component; the government will facilitate the zone's setup and operation to promote export-oriented manufacturing, technology transfer, skill development, and replication of similar industrial units, and will support private business collaboration through planned conferences and cooperation measures.