Pakistan is attracting Chinese investment in the textile sector. This includes the whole value chain of textiles, from cotton to garments. The Chinese are already cooperating in manufacturing of polyester yarn in Pakistan.

For instance Chinese private textile company Challenge Apparels will establish a state-of-the-art garment manufacturing facility in Pakistan. The aim is to enhance Pakistan’s exports and help generate thousands of new jobs in the country over the next couple of years. Challenge Apparels is among the leading exporters to top brands around the world, especially in developed countries.

Pakistan is facilitating investors through various reforms and hopes to benefit from the US-China trade war. If businessmen from China bring fabrics to Pakistan for making the finished products, and export those to the US, then they will not only able to maintain their client base but Pakistan will also benefit. Enabling Chinese textile exports this way will give a boost to Pakistan’s exports and deal with the balance of payments situation. When Chinese businessmen carry out their exports jointly with Pakistan, making use of the raw materials as well as Pakistan’s human resources, it will add to the earnings of Pakistan. Also China is helping Pakistan's spinning mills become more cost efficient and competitive.