ICBC loan to Faisalabad Industrial Estate Development and Management Company (FIEDMC) for the Ruyi-Masood Textile Industrial Park Project

On May 28, 2014, a foundation laying ceremony was held for the Ruyi-Masood Textile Industrial Park in Punjab Province, which was jointly invested by Shandong Ruyi Group and Pakistan Masood Textile Factory with a joint investment of 200 billion rupees. To operate this park, a joint venture between Shandong Ruyi Group and Pakistan Masood Textile Factory, called Ruyi-Masood Textile Company, was created. A delegation from the International Commercial Bank of China (ICBC) visited the project site and approved the investment plan for the Faisalabad Shandong Ruyi Textile Park, according to Faisalabad Industrial Estate Development and Management Company (FIEDMC) officials. Shandong Ruyi, one of the largest textile conglomerates in China, made their first payment to the FIEDMC, in order to start construction work for Pakistan's largest cotton-spinning mills. On November 8, 2014, the Industrial and Commercial Bank of China (ICBC) signed a framework agreement with the Ruyi-Masood Textile Company of Pakistan. However, no further financing agreement has been signed for the industrial park. With a total investment of $2 billion, the mills would consist of 600,000 spindles, generating thousands of jobs in the textile hub of the country. This is the highest foreign investment in the textile sector of Pakistan. The Chinese have to complete the payment in three installments. The first will cover 10% of the total amount, while the second will cover 40% and 50% will be covered in the third. According to authorities, Shandong acquired the land and started construction work. They added that the construction of buildings, residential apartments and boundary walls has officially begun. Two coal-based power plants of 270 megawatts, 135 MW each, are installed in the industrial estate to facilitate the energy requirements of the companies. Habib Bank also actively participated in the investment of the project, and clearly provided financing support for the project. The construction of the "ICBC-Ruyi Masood Textile and Garment Industrial Park" is expected to be completed and put into operation in 18 months. A series of plans and implementations have finally set a milestone for Chinese textile and garment enterprises to invest in Pakistan on a large scale. The Faisalabad Shandong Ruyi Textile Park is located in M-3 Industrial Estate in Faisalabad within Punjab Province

Additional details

This project is also known as the Faisalabad Shandong Ruyi Textile Park Project and the China-Pakistan Industrial Park Project. The Chinese project title is “中巴工业园” It is unclear if the ICBC loan was ever finalized beyond the framework agreement and officially committed-to; therefore, this project is status-coded as a pledge rather than a commitment or being in implementation for the time being.

Number of official sources

5

Number of total sources

11