A delegation comprising of six members visited Federation of Pakistan Chambers of Commerce & Industry FPCCI from China Hi-Tech Group which is a state-owned textile and energy machinery company, the delegation had a detailed meeting with officials to upgrade textile machinery in Pakistan especially spinning mills.
According to the details, 80 percent of the yarn including other textile products will be re-exported to China to add more value to sell the finished goods at better prices in the International market, Pakistani businessmen were told. The group was led by Shaohul Zhang, Executive Director, it was a 5-day visit to Pakistan starting from September 17. Today the delegation would visit Lahore to organize business sessions among textile businessmen.
The Chinese firm is interested in joint ventures with Pakistani Textile industry in order to upgrade spinning mills which would be cost-effective and efficient to streamline the production process. Zhang said, they want to install at least one million spindles on one spinning mill which is the lowest benchmark in China, whereas in Pakistan textile company only have hundreds of spindles on one spinning machine. China Hi-Tech group is also interested in setting up power plants to meet the demand for the entire Textile industry.
The head of the Chinese delegation Zhang said China wants to relocate its textile units in Pakistan which could be beneficial due to low-cost labor. FPCCI acting president assured Chinese delegation for the full cooperation from Pakistani textile industry.
Would China invest in Pakistan textile industry to upgrade textile units and invest in power generation projects to improve Pakistan’s textile industry? No not at all, China would make deals with Pakistan to re-export 80% of the yarn and other unfinished textile products from Pakistan in return and provide raw material to their textile industry in China which will late make finished goods to sell in international markets with high margins.
China is the real beneficiary from this deal, it would get unfinished textile products at the lowest possible cost from Pakistan and make its fortune by selling finished goods in the international market.