Punjab government has opened two new textile factories in the Challenge Special Economic Zone, projects expected to create thousands of jobs for local workers and strengthen Pakistan’s textile exports through higher-value production. One of the factories will manufacture an advanced fabric that is being produced in Pakistan for the first time, marking a shift toward more sophisticated textile technology Gwadar Pro reported.

The ribbon-cutting ceremony was led by Punjab Minister for Industry and Trade Chaudhry Shafaq Hussain, Chinese Consul General Zhao Shiren and Challenge Group Chairman Huang Weiguo on Dec. 30. The Industries, Commerce and Investment Department (IC&ID) Punjab released details of the development.

Both factories are being developed by Challenge Apparel Group, a Chinese-backed enterprise. According to the IC&ID, the units are scheduled to begin production within the next year, with advanced machinery already on order. One of the plants will manufacture a textile product that has never before been produced in Pakistan, signaling a shift toward higher-value textile output.

According to the IC&ID, the expansion of manufacturing capacity in the Challenge Special Economic Zone highlights Punjab’s efforts to attract foreign investment, diversify industrial production and strengthen Pakistan’s position in the global textile market.

In August 2025, Prime Minister Shehbaz Sharif inaugurated the Challenge Group Special Economic Zone, following the company’s commitment to invest $100 million over five years in Pakistan. The project is expected to generate up to $400 million in exports, while supporting technology transfer, skill development and sustainable industrial growth.

Credit: Independent News Pakistan (INP) — Pak-China