LAHORE — China has set a new record for the fastest foreign investment in Punjab. Major textile firm Challenge Textile Group will invest $150 million to build Pakistan’s largest advanced textile mill in the province.
At a ceremony in Lahore, Bank of Punjab and Challenge Fashion Pvt Ltd signed an MoU to establish a high-tech Special Economic Zone on 100 acres. The project will use 6 million meters of fabric monthly to produce up to 208 million garments each year.
“وزیراعلیٰ پنجاب مریم نواز شریف سے لاہور میں متعین قونصل جنرل ژاؤ شیریں اور چیئرمین چیلنج گروپ ویگو ہانگ کی ملاقات”
پنجاب میں چین کی جانب سے تیز ترین سرمایہ کاری کا نیا منفرد ریکارڈ
بینک آف پنجاب اور چیلنج فیشن پرائیوٹ لمیٹڈکے درمیان ایم او یو پر دستخط
چین کے بڑے… pic.twitter.com/2avBVPOE6K
— PMLN (@pmln_org) August 13, 2025
The initiative is expected to generate over $100 million annually in exports. It also aims to promote industrial innovation, including recycling plastic waste into high-performance fabric.
Earlier, Punjab Chief Minister Maryam Nawaz met with Chinese Consul General Zhao Shiren and Challenge Group Chairman Weiguo Hong. They discussed boosting textile investment and collaboration on Punjab’s upcoming Garment City project.
Maryam Nawaz said Punjab would fully support foreign investors and work closely with Challenge Group to make the project a success. She added that the government is also investing in vocational training through TEVTA to build local skills for the textile sector.
Chairman Weiguo Hong said the company plans to bring even better textile technology to Punjab than is currently used in China. He called the investment a result of CM Maryam Nawaz’s recent visit to China and her push for industrial modernization.