China is helping Pakistan set up cotton spinning mills. These mills would come up in the industrial estate of Faisalabad and consist of 6,00,000 spindles, generating thousands of jobs. Faisalabad is the textile hub of the country.
The work is undertaken by Shandong Ruyi, one of the largest textile conglomerates in China. And this is the highest Chinese investment in the textile sector of Pakistan. They are making payments in three installments. The first will cover 10 per cent of the total amount, while the second will cover 40 per cent and 50 per cent will be covered in the third. The construction of buildings, residential apartments and boundary walls has begun. Two coal-based power plants have been installed in the industrial estate to facilitate the energy requirements of the companies.
Huge Chinese investments are expected in the industrial estate in the near future. Infrastructural and construction machineries dispatched from China will arrive in Faisalabad in a few days. The Chinese are losing their competitive edge in their home country because of high wages – almost six times higher than in Pakistan – which gives them more incentive to invest elsewhere.
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