LAHORE - An MoU has been signed between the Bank of Punjab and Challenge Fashion Private Limited, paving the way for one of China’s largest textile enterprises, Challenge Textile Group, to invest $150 million in Punjab. Under the agreement, a state-of-the-art special economic zone will be developed on 100 acres in the province, where the group will produce between 2 and 8 million garments each month using 6 million meters of fabric.
The project will establish Pakistan’s largest advanced textile industry in Punjab, with production targeted at well-known American brands. It is expected to create 18,000 jobs within eight months and 25,000 over the next five years, while sourcing raw materials locally. Annual exports from the facility are projected to exceed $100 million.
Punjab Chief Minister Maryam Nawaz Sharif met Chinese Consul General Zhao Shiren and Challenge Group Chairman Wego Hong in Lahore to discuss investment opportunities and the promotion of the textile sector. Wego Hong praised Punjab’s investment-friendly policies.
and expressed his intention to introduce advanced textile machinery and technology from China, fostering innovation in the province’s textile market.
Maryam Nawaz said Pakistan is working to enhance trade and business partnerships, adding that Punjab is establishing a world-class garment city with the expertise of Challenge Group. She assured complete government support for the project and highlighted the potential of shifting China’s large textile operations to Punjab. She noted that the Challenge Special Economic Zone will play a vital role in accelerating industrial development, with initiatives such as recycling plastic waste for use in high-performance fabrics.
The chief minister also emphasized the government’s investment in technical skills training through TEVTA to provide market-ready human resources for industrial enterprises.
Wego Hong said the group’s decision to invest was motivated by the pro-investment policies and vision of the chief minister, noting that recent Chinese investments in Punjab reflect the positive outcomes of her earlier visit to China. He added that the Punjab government’s approach aligns closely with the group’s vision and trade objectives.
The delegation from Challenge Group received a warm reception from the chief minister upon its arrival in Lahore.