LAHORE: The textile sector is upbeat on the prospects of trade enhancement and joint ventures after signing a memorandum of understanding with Shandong Chamber of Commerce as Shandong generates $100 billion of Chinese textiles exports, accounting for 60 percent yarn and fabric consumed in China, an official said on Friday.
Pak-China Investment Company Limited (PCICL) after evaluating the high prospects of mutually beneficial trade in textile between Pakistan and China facilitated the signing of MoU between All Pakistan Textile Mills Association (APTMA) and Shandong Chamber of Commerce, he said.
PCICL Managing Director Cao Wen Jiang said that the situation is similar to the conditions that prevail between the United States and Mexico.
The wages of Chinese basic textile workers are now three times the average wage of Rs8,000 drawn by Pakistani textile worker, he said.
You Wei Li, Deputy Chairman, Shandong Chamber of Commerce, said that the Shandong province is close to the South Korea and has a population of eight million with annual exports of $200 billion.
More than 50 percent of the exports are of textiles, he said.
APTMA Punjab Chairman Ahsan Bashir said that China is gradually opting out of low value-added textiles, including yarn, which is the basic raw material for its textile industry.
The Chinese are looking for joint ventures in yarn production in Pakistan to ensure sustained supplies of this raw material to their industry, he said, adding that the free trade agreement (FTA) that China signed with Pakistan provides it huge advantage over its global competitors.
High textile delegations would frequently visit Shandong to accelerate trade and joint ventures in spinning fabric and apparel sectors, he said. Adil Butt, a leading apparel exporter, said that the Chinese have agreed to establish an apparel manufacturing unit in Pakistan in collaboration with local investors.
The unit would be run and managed by the Chinese that would reflect the Chinese style of operation and working, he said, adding that this venture would help bring positive change in work ethics of local apparel units.
APTMA Former Chairman Gohar Ejaz said that realising the acute power shortage in Pakistan, the Chinese have agreed to identify and set up coal-based power projects for the energy requirements of the textile clusters in Pakistan.
Since the market access for textile and clothing is of significant interest for the two countries, it was decided that Pakistan and China would enhance their endeavours and develop joint strategies to serve their mutual interests, he said. Pak-China Investment Company would facilitate financial support for joint ventures between the two countries. Pakistan’s Finance Minister Dr Hafeez Shaikh is the chairman of the company.