The Chinese are contemplating investing in sick textile units of Pakistan. More than 115 textile mills have closed for good and many have disposed off their machines at junk rates. Their deserted sites are ideal for establishing modern textile units. They closed because they were operating on obsolete technology and lacked resources to bring in the new one.

But apart from that the basic infrastructure to operate a modern unit exists. There are sheds and storage space and gas, power, and water connections. So the Chinese may enter into joint ventures with sponsors of the closed mills. The mills could be started within six months of investment and would be viable from day one. This is because modern spindles consume 40 per cent less power and require only one-third of the workforce that works in most existing spinning mills in Pakistan.

It makes business sense for the Chinese to start spinning yarn in Pakistan. The basic textile sector of Pakistan is the fourth largest cotton producer and home to low-cost skilled labor. And many Pakistani basic textile entrepreneurs including the closed mills have shown keenness to enter into joint ventures with the scores of Chinese entrepreneurs that have been visiting Pakistan for this purpose.