China aims to invest in Pakistani shoe companies

Reporting on a Chinese trade association’s intention to support companies working in Pakistan’s footwear industry.

The Association of Guangdong Shoes Manufacturers (TAGSM) is reportedly making plans to invest in Pakistan’s shoe industry. TAGSM’s chairman Suilong Liu recently led a delegation to Pakistan and met with representatives of the country’s footwear producers and government officials to discuss the possibility of financially supporting the sector.

During this visit, Mr Liu had meetings with Pakistan Footwear Manufacturers Association (PFMA) chairman Mansoor Ehsan and signed a memorandum of understanding describing the broad outlines of an agreement between the two parties. The signing took place at the Punjab Board of Investment and Trade in the presence of government minister Shafay Hussain.

A ‘huge’ potential

According to Mr Liu, the footwear market in Pakistan has a huge potential for attracting foreign investment. He emphasised his commitment to making a significant investment in Pakistan’s footwear manufacturing sector, and commented: “Initially there will be PKR 2 billion (USD 7.2 million) investments. Gradually, it will increase to PKR 20 billion (USD 71.8 million),” and added: “Pakistan represents a burgeoning market for footwear with vast opportunities for growth and development.”

The collaboration between TAGSM and PFMA is expected to bring a number of benefits to Pakistan’s footwear industry while boosting the development of the supply chain materials market. These improvements include the provision of innovative designs, modern manufacturing techniques and state-of-the-art technology. The stated aim of this partnership is to boost local production capabilities, as well as to enhance the quality and competitiveness of Pakistani footwear within global markets.

Following the meeting with Mr Liu and his supporting team, Mr Ehsan welcomed the planned investment and highlighted its potential impact on the local economy, remarking: “This investment will create numerous job opportunities and contribute to the overall economic development of Pakistan. We look forward to a mutually beneficial partnership with TAGSM.”

Publishing Data

This article was originally published on page 4 of the June 2024 issue of SATRA Bulletin.

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