According to Pakistan’s “Business Record” report, due to the difficulty in receiving a 500 million rupee allocation from the Pakistani government and a 450 million rupee investment from other investors, the construction of the Textile City in Karachi has stalled.
It is reported that in December 2007, the Economic Coordination Committee of the Pakistan Cabinet approved the provision of 500 million rupees to the textile city, but the Ministry of Finance of Pakistan delayed the allocation due to financial constraints. Relevant sources said that more than a year has passed but the Pakistani government has not taken any substantive measures, which has caused some textile companies to move to neighboring countries such as Bangladesh, India, and Sri Lanka.
The proposed textile city is located in the western industrial zone of Port Qasim, Karachi, covering an area of 1,200 acres. A garment city covering an area of 300 acres will be built next to it. The total investment in the Textile City is estimated to be 3.6 billion rupees, including investment in infrastructure such as power stations and wastewater treatment. The shares of the various parties in the Textile City are: the Federal Government of Pakistan 45.5%, the Sindh Provincial Government 9.09%, the National Bank of Pakistan 4.55%, the Pakistan Industrial Development Corporation 9.09%, as well as the Pakistan Investment Company, Saudi Arabian Industry and Agriculture Company, Bali (Biya) Holding Company, Pakistan Industrial Credit Investment Company, and Export Processing Zone 4.5% each. Sources say that no Chinese company has expressed interest so far.
