Pakistan has opened its arm to embrace Chinese traders… In order to welcome joint ventures with China, Pakistan has announced an export-led growth package encompassing provision of drawback of local taxes and levies at four per cent on yarn and greig fabric, five per cent on processed fabric, six per cent on textile made ups, seven per cent on textile & garments against realisation of exports.
The two countries are planning to enter into joint ventures for 1,00,000 spindles, 500 airjet looms and fabric dyeing and printing plants in Pakistan. Chinese companies are considering this opportunity as growth has slowed down at home. Apart from textile sectors, Chinese firms are also eyeing to grab the opportunity in cement, steel, energy considered as backbone of Pakistan’s economy.
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Last year also, a Memorandum of Understanding (MoU) was signed between Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) and China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT) during the China Asia Textile Forum 2016 to promote textile and apparel companies in China and Pakistan, and build better trade cooperation between the two.