Pakistan and China have approved a joint venture agreement in the footwear manufacturing sector, aimed at strengthening industrial cooperation and technology transfer between the two countries.
The joint venture has been signed between Pakistan’s listed company, Service Global Footwear, and China’s Golden Star Footwear Group. Details of the agreement were formally conveyed by Service Global Footwear to the Pakistan Stock Exchange (PSX) management through an official notice, according to company sources.
Under the agreement, Service Global Footwear will make a long-term investment of Rs 1 billion in the production of non-leather footwear. The investment will be made in phases over a period of five years.
As per the disclosed details, the Pakistani company will hold a 51 percent stake in the joint venture, while the Chinese partner will have a 49 percent share. The joint venture will operate at Service Global Footwear’s existing facility in Muridke.
The Pakistani company will provide its land and building in Muridke to the joint venture on a lease basis. The Chinese partner will lease the land and building for an initial period of one year under the joint venture arrangement.
According to the company letter, the building area at the Muridke site measures 79,760 square feet, while the total land area is 136,816 square feet. The project is expected to facilitate the transfer of modern footwear manufacturing technology from China to Pakistan and support the growth of the local footwear industry.
